Two new blockchain-based investment products have appeared on the market. Horizons ETFs Management Canada is launching a new blockchain-related exchange-traded fund (ETF) on Thursday. Traded on the Toronto Stock Exchange, the new fund, called Horizons Blockchain Technology and Hardware Index ETF, will provide exposure to companies showing interest in blockchain hardware and services. The ETF will join similar funds developed by Harvest Portfolio Group and Evolve Funds Group, which have declined by 25% and 20% respectively since their launch in 2018. Elsewhere, the US-based Reality Shares launched a new blockchain ETF focused on Chinese companies.
Horizons’ co-CEO Steve Hawkins said in an interview with Bloomberg:
“We don’t want to be investing in a $20 million market cap company at this stage, there’s just way too much risk to that. Investors need to be investing in the well-established global infrastructure to blockchain, not necessarily taking risks on the startup blockchain development companies.”
The ETF will track companies focusing on blockchain applications and services, including Hive Blockchain, Nvidia Corp, and Digital Reality Trust. The fund, with the ticker BKCH, is relying on the Solactive Blockchain Technology and Hardware Index, which also tracks tech giants like Intel (NASDAQ:INTC), AMD, and Micron Technology (NASDAQ:MU).
On Wednesday, US-based ETF and index provider Reality Shares launched the first ever fund focused on China’s blockchain-oriented companies. The Reality Shares Nasdaq NexGen Economy China ETF, with the ticker BCNA, is traded on NASDAQ and tracks the Reality Shares Nasdaq Blockchain China Index.
Reality Shares CEO Eric Ervin commented:
“China is quickly becoming a global epicenter for blockchain innovation. In 2017, the nation filed for more blockchain-related patents than any other country in the world, and the Chinese government recently endorsed blockchain technology as an economic ‘breakthrough.’”
The index, which focuses on China-based firms that invest in blockchain projects, rebalances every six months and includes 31 components.
BCNA’s index constituents are decided based on the Reality Shares’ proprietary Blockchain Score™ approach, which values companies considering seven major aspects, such as:
- Role in the blockchain space;
- Blockchain product stage;
- Economic impact;
- Blockchain Institute membership;
- Research and development expenditure;
- Company filings;
- Innovation potential.
In January, Reality Shares launched its first blockchain ETF called Reality Shares Nasdaq NexGen Economy ETF, with the ticker BLCN.
This article appeared first on Cryptovest
