Announced earlier today, Investment manager Brian Kelly will be launching a new blockchain startup-based exchange-traded-fund (ETF).
This project, which Kelly will be partnering with REX Shares Founder Gregg King, will actively manage a portfolio of approximately 30 companies that are currently using blockchain technology and also matching one of four general criteria. This fund will greatly help support startup companies.
“When I look at the investment landscape, to me blockchain and cryptocurrencies are a once-in-a-lifetime investment opportunity … if I look at every other asset class, to me the most attractive investment is blockchain and cryptocurrency. The growth is explosive [and] the potential is enormous.”
The four criteria consist of enterprise blockchain, or companies using the technology to streamline existing business processes, “Wall Street disruptors,” that is, services changing how securities are traded ( such as Overstock.com’s tZone exchange); mining focused entities; and exchange firms and startups creating a decentralized internet, he said.
Adding that “this is an active ETF [so] we’ll be able to add companies to space.”
This fund, according to him, will be targeted towards anyone or firm who has a U.S. brokerage account and investors from abroad. According to him, an individual does not have to be an accredited investor to participate.
Kelly explained how companies have been developing as a result of blockchain technology from last year using the ETF, stating that firms were “finally getting some revenue from the blockchain and cryptocurrency. Even a year ago you had a few who were doing it, but they didn’t have significant revenue streams.”
Adding that with some companies receiving bank financing, He will be able to “put together a diversified portfolio.”
Kelly concluded by saying;
“With all investments obviously there’s risk, and the volatility of bitcoin versus equities can change, historically bitcoin has been volatile. That being said we don’t know what the future holds – as more people and more investments come into cryptocurrencies those potentially could actually become less volatile.”