Project Reality Shares announced the launch of the first exchange-traded Fund (ETF), the portfolio will be shares of Chinese blockchain-companies.
The Fund, called the Reality Shares Nasdaq NexGen Economy China ETF (Nasdaq: BCNA), is going to collaborate with Chinese companies, whose activity relates to the development, research and application of the blockchain. Before the inclusion of the assets in the basket, companies are evaluated on seven different key indicators, which include, for example, their role in the blockchain ecosystem. As explained by Reality Shares, their methodology is based on the analysis of quantitative factors and was initially designed to determine the top-rated companies in the field of blockchain technology.
In BCNA is already included 31 action, the basket is scheduled to be updated every six months. The head of the Reality Shares Eric Erwin (Eric Ervin) explained that such a move would give investors the opportunity to easily access to the evolving market of the blockchain in China. Erwin is confident that Asian blockchain-industry will provide “incredible long-term investment opportunities.”
Reportedly, the company chose China to create investment Fund for several reasons. First, historically the Chinese market developed independently from the U.S., and it established a significant level of equality of all participants. In addition, the country has a high credit rating. All this together makes the Chinese market very attractive to investors. As for the blockchain, Reality Shares, notes a large number of related technology patents filed in 2017. It is expected that the opening stock of investment Fund shares blockchain-companies may contribute to the further growth of the Chinese economy.
Recall that earlier this month, one of the largest cryptocurrency exchanges in China, Huobi, has announced the launch of its own exchange-traded Fund based both on retail and institutional investors.
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