[Block Chain] ETF Launches: The First Blockchain ETFs

ETF Launches: The First Blockchain ETFs

The two set of ETFs focus on companies engaged in blockchain. The block chain technology on which cryptocurrency transactions are built. This ETFs launched this week amid some concern from the SEC. But, they have received great interest from investors.

All the pent up demand for assets related to digital currencies, it probably isn't surprising that exchange-traded funds with purported exposure to cryptocurrencies or blockchain technologies are popular with investors.

Investors may assume that the two new blockchain focused funds debuting this week. They are substantially similar in reality, but they’re quite different. The Amplify Transformational Data Sharing ETF (BLOK) is actively managed and tends to weight more heavily towards small-caps and domestic companies. The Reality Shares Nasdaq NexGen Economy ETF (BLCN) sticks to bigger companies and devotes a larger share of assets overseas. Both funds, however, are far from pure blockchain plays.

BLOK only just started trading but it has an NAV of $20. The ETF, according to the fund description, is comprised of “global companies at the forefront of blockchain-based technology.”

With names such as Intel (INTC), Cisco Systems (CSCO),IBM (IBM) and Nvidia (NVDA) among the biggest holdings, investors will largely be buying broader tech portfolios.