Learn More On Why Brian Kelly Is Launching Blockchain ETF
As of now, the blockchain-based investment space is getting crowded along with one being recently launched. Here we take a quick look into this blockchain ETF.
Here’s the BKC ETF
Launching a new actively managed blockchain startup based exchange-traded fund, Brian Kelly the CEO and founder of BKCM and a CNBC contributor calls it the REX BKCM ETF (BKC). It is here that BKCM LLC is an investment firm focused on digital currencies.
It is interesting to note that here the ETF is being launched in partnership with REX shares Founder Gregg King, as comprised of investments in around 33 blockchain and cryptocurrency-related companies. It is then that fund seeks to generate revenue as well as profit from cryptocurrency-related and enterprise blockchain technology-related projects and businesses supporting firms from the seed stage onward. Thereby the RETF will trade on NYSE Arca Exchange under the ticker symbol BKC with an expense ratio of 0.88 percent.
Whereas at the time of launch the top five holdings of the fund included the Taiwan Semiconductor Manufacturing, Global Unichip, GMO Internet, Overstock.com (OSTK), and SVB Financial Group (SIVB ), where each come with an 8 percent weighting. Then other notable names are in the holding list that includes Square Inc. (SQ) and the chipmaker Advanced Micro Devices (AMD).
What Has Brain Kelly To Say On Blockchain ETF
Brian Kelly while speaking to CoinDesk, has outlined the basic strategy for selecting the eligible companies where they should fit one of the four criteria enterprise blockchain, or companies using the technology to streamline existing business processes; Wall Street disruptors, similar to those developing or offering services on changing how securities are traded, a mining-focused entity as well as exchange firms and startups creating a decentralized internet.
As of now being an actively managed ETF, it allows the fund manager the flexibility to add, reduce and switch investments in different companies, as the blockchain and cryptocurrency sector evolves along the road as it will invest in enterprise companies operating in the blockchain space, overtime focusing entirely on blockchain specific startups. Here it is that the funds will not invest in cryptocurrencies while remaining open to companies with regulated security offerings.
When Will The SEC Approve A Bitcoin ETF?
It seems to be a longer wait as the SEC rejected yet another set of proposals for Bitcoin ETF’s recently as the batch of proposals joined a heap of applications for Bitcoin ETFs rejected by the federal agency. Thereby the agency’s hostile stance, the frequency as the number of Bitcoin ETF applications, has multiplied with the growing popularity of cryptocurrencies as an investment tool. Here it might be too soon to force the agency’s hand regarding Bitcoin ETFs.
What Are The Growing List Of Concerns And A Possible Solution
It is said that for the most part, the cryptocurrencies have had an unchecked growth trajectory ever since their introduction with the absence of regulation within the cryptocurrency ecosystem has been a mixed blessing
It is observed that thereby, on the one hand, it has resulted in the growth and the innovation as it has also been eased entry for unsavory characters looking to make a quick buck off unsuspecting investors, as the SEC’s letter was earlier highlighted several such concerns related to security and Bitcoin custody at the cryptocurrency exchanges.
Therefore in its most recent rejection, the agency had written that the proposals had fallen short of those requirements outlined in the Exchange Act indicating that as national securities exchange’s rules that be designed to prevent those fraudulent and manipulative acts and also practices. Here it is in particular that the SEC stated that the proposal failed to demonstrate that Bitcoin futures markets are markets of significant size, with a critical failure as it does not prevent fraud in Bitcoin markets. It was then identified surveillance sharing as a necessary practice to satisfy the provisions outlined in the Exchange Act.
Finally Is There An Uncertain Timeframe
Further, on the CEO of CoinShares, Ryan Radloff has a Bitcoin ETF listed in Sweden where it is estimated that it might take nine months to a year for the SEC to approve a Bitcoin ETF, with approval not occurring until the CFTC concludes its investigation into price manipulation at cryptocurrency exchanges. According to him, it is tough to put new products on the market as a regulatory body is investigating behavior in the cash and spot market when the SEC has said interbody surveillance is one of the primary concerns.
Whereas according to Matt Markiewicz, the MD of Innovation Share, it was suggested that a timeframe longer than 12 months as the recent dip and relative stability of crypto markets have helped make the case for the Bitcoin ETF stronger. He said that as soon as they see hyper volatility, again they will see headwinds to getting it through.