Bitcoin, Ethereum, Ripple are among the growing list of cryptocurrencies that have received mainstream media attention during the past 12 months. As the SEC looks to regulate the cryptocurrency industry, extreme volatility has continued in the space, leaving most advisors uncertain on whether to invest or not. Hear from top industry experts on the case for crypto, the future of crypto related investment vehicles and how advisors can best educate their clients.
In the upcoming Disruptive ETF Virtual Summit, an online virtual conference hosted by ETF Trends on Oct. 18, 2018, Matt Hougan, Global Head of Research for Bitwise Asset Management, and Brian Kelly, Portfolio Manager at REX Shares, will cover the SEC’s current stance on bitcoin and other cryptocurrency ETFs; go over what cryptocurrency allocations, if any, should you allocate in a portfolio; and consider the future outlook for bitcoin and cryptocurrency ETFs.
While there are no cryptocurrency- or bitcoin-specific ETFs on the markets, ETF investors can still gain exposure to the innovative technology behind cryptocurrency or what is known as blockchains.
For example, the REX BKCM ETF (NYSEArca: BKC), which is a partnership between Rex Shares and BKCM Funds, targets small- and mid-companies around the globe that seek to profit from blockchain technology. The ETF is managed by Brian Kelley.
The REX BKCM ETF is an actively managed fund that tries to generate total return by obtaining investment exposure to a global set of equity securities which attempt to generate revenue or increased profit from cryptocurrency-related and enterprise blockchain technology-related companies.
Blockchain technology provides a transparent and secure process to transfer and digitally record information on a shared transaction database through a secure, decentralized, peer-to-peer distributed ledger, which negates the transactional challenges of counterparty trust and the need for a central repository or ledger. It is designed to facilitate the transfer of information or property between users such that the transfer is guaranteed to be secure and known to all participants and shared across a distributed network where the legitimacy of the transfer cannot be challenged.
An estimated 20% of Trade Finance will incorporate Blockchain/Distributed Ledger Technology by 2020, according to IDC. A Santander study also projected that Blockchain technology could reduce financial services infrastructure costs by over $15 Billion a year, so the technology could have cost-saving applications across a number of industries.
“There is much more to blockchain and cryptocurrencies than this high level view. It is an ever changing technology that is revolutionizing our world with its capabilities,” according to REX Shares.
To get more insight on disruptive ETFs, sign up for the Disruptive ETF Virtual Summit set to take place this fall.