Reality Shares CEO Talks Blockchain ETF And The Technology's 'Massive Innovation'
Reality Shares co-founder and CEO Eric Ervin discussed the blockchain-focused Reality Shares Nasdaq NextGen Economy ETF (NASDAQ:BLCN) and the direction of blockchain technology during Wednesday’s PreMarket Prep.
In January, Reality Shares opened the Nasdaq NextGen Economy ETF, which invests in blockchain-related companies.
Reality uses a “Blockchain Score” system to evaluate companies that are utilizing the technology, rebalancing the portfolio every six months, Ervin said.
The SEC would not allow Reality to include “blockchain” in the ETF name due to the volatility that blockchain-related speculation has caused in recent months, Ervin said.
To quell concerns that the ETF was a speculative scam, Reality built a board of advisors with industry experts and examines the code that each company is using to ensure they are using the technology in a productive manner, he said.
The Value Is In Blockchain Technology
Ervin stressed that the ETF is not investing in cryptocurrency, but the underlying technology that makes cryptocurrency transactions possible: “Blockchain is not bitcoin.”
Blockchain technology has cutting-edge applications outside of the cryptocurrency market.
This could have a major impact on companies with tight margins like Walmart, said Ervin.
The Future Of Blockchain
Blockchain technology is a "massive innovation," Ervin said, adding that bitcoin is the start, but the capabilities of the technology are far-reaching.
With Overstock.com, Inc. (NASDAQ:OSTK), Ervin predicts that the company’s blockchain-based exchange will overtake the business.
“[This segment] is gonna be bigger than the Overstock business entirely. Now they're thinking about selling Overstock," Ervin said on PreMarket Prep.
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