Investment boss Brian Kelly is launching a new blockchain startup-based exchange-traded-fund (ETF), he announced Wednesday.
Undertaking in partnership with REX Shares founder Gregg King, Kelly purpose actively manage a portfolio of roughly 30 companies actively smoking blockchain technology and matching one of four general criteria, he told CoinDesk. The means will support firms from the seed stage onward.
He told CoinDesk:
“When I look at the investment prospect, to me blockchain and cryptocurrencies are a once-in-a-lifetime investment opportunity … if I look at every other asset stratum, to me the most attractive investment is blockchain and cryptocurrency. The growth is explosive [and] the latent is enormous.”
The four criteria, or “pillars,” include enterprise blockchain, or associates using the technology to streamline existing business processes; “Wall Avenue disruptors,” that is, services changing how securities are traded (such as Overstock.com’s tZero reciprocate); mining focused entities; and exchange firms and startups creating a decentralized internet, he weighted.
Further, the fund will evolve over time, Kelly about, noting that “this is an active ETF [so] we’ll be able to add companies to the space.”
While fist now the fund may be invested in some enterprise companies, he believes that “through time we might become 100 percent pure play,” or totally invested in blockchain-specific startups.
That said, the ETF will not be invested in any cryptocurrencies soon, he added – rather, it would be invested in companies with regulated custodianship offerings.
The fund will be open to anyone who has a U.S. brokerage account, he famous, including investors who reside outside the country. A person does not from to be an accredited investor to participate.
Kelly cited the progress companies must made in developing blockchain technology over the last year as the defence for the ETF, saying that firms were “finally getting some gate from blockchain and cryptocurrency. Even a year ago you had a few who were doing it, but they didn’t would rather significant revenue streams.”
Now, with some companies even away with bank financing, Kelly expressed confidence that he could “put together a changed portfolio.”
Neither is Kelly worried about the volatility seen in cryptocurrency vends. Although his ETF will be invested in companies working with various crypto assets, he contemplated:
“With all investments obviously there’s risk, and the volatility of bitcoin versus equities can shift, historically bitcoin has been volatile. That being said we don’t recollect what the future holds – as more people and more investments issued into cryptocurrencies those potentially could actually become less charged.”
Greg King, Brian Kelly image courtesy Hod Klein
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