First Trust Launches a Blockchain ETF

BLCN tracks the Reality Shares Nasdaq Blockchain Economy Index, according to a SEC exemptive relief filing. The underlying index includes companies that are committing material resources to developing, researching, supporting, innovating or utilizing blockchain technology for their proprietary use or for use by others.

“A growing number of industries and institutions are looking to embed blockchain technology into their day-to-day processes. Blockchain allows customers and suppliers to connect directly, without the need for a central entity, like a bank or financial institution, to make a transaction,” according to First Trust.

LEGR’s index is capped at 100 constituents and requires member firms to have market values of at least $500 million.

Companies in LEGR are split into three categories: active enablers, active users and active explorers. Active enablers are companies “actively developing blockchain technology products or systems for their own internal use and for the sale and support of other companies,” said First Trust. Active users are defined as firms use blockchain technologies while active explorers are companies that have publicly said they are considering use of blockchain technologies.

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