Here Comes A Blockchain ETF
Blockchain — the technology used to record and store transaction in cryptocurrencies such as bitcoin — could get a dedicated exchange traded fund. Amplify ETFs has filed plans to introduce the Amplify Blockchain Leaders ETF.
Assuming the ETF comes to market, it will be actively managed and look to outperform a blockchain index developed by Emerita Capital Indices and EQM Indexes. San Francisco-based Emertia Capital specializes in financial research and blockchain technology. The company's website features a link to the EQM-Emerita Blockchain BLOK 50 Global Index, but no additional data at this time.
Amplify's index “invests in companies that are well-positioned to profit from blockchain technologies, and exchange-listed products that invest in blockchain-based applications such as digital commodities,” according to a statement from Chicago-based Amplify.
News of Amplify's plans for a blockchain ETF comes just two days after CME Group Inc. (NASDAQ:CME) said it plans to launch bitcoin futures sometime in the current quarter.
The new contract will be cash-settled, based on the CME CF Bitcoin Reference Rate (BRR) which serves as a once-a-day reference rate of the U.S. dollar price of bitcoin. Bitcoin futures will be listed on and subject to the rules of CME,” according to the exchange operator.
That news sent the price of bitcoin to record highs. Regulators have previously rebuffed various plans for bitcoin-related ETFs, including some based on futures that at the time of filing for those products did not exist. Some industry observers believe CME's foray into bitcoin futures means a bitcoin ETF is not far from coming to market.
“We believe blockchain is a foundational technology that is still in its early stages, much like the internet in the mid-1980s,” said Amplify CEO Christian Magoon. “The Blockchain Leaders ETF seeks to provide investors with convenient exposure to companies and applications actively involved in the growing blockchain ecosystem.”
The global cryptocurrency market has ballooned to a market value of $172 billion, according to CME data. Plans for the blockchain ETF do not yet include a ticker or expense ratio, indicating a debut is not imminent.
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