Following bitcoin’s meteoric rise in 2017, issuers of ETFs looked to tap into investors’ soaring interest in the cryptocurrency space. With regulators rebuffing bitcoin-related ETFs, issuers turned to blockchain funds.
In 2018, ETF issuers introduced six blockchain ETFs. However, some of those funds have struggled to gain traction with investors and one is now heading for closure.
The REX BKCM ETF (NYSEArca: BKC), which is a partnership between Rex Shares and BKCM Funds, will be closed in early February.
“ After careful consideration, Exchange Traded Concepts, LLC, the Fund’s investment adviser, in consultation with REX Shares, LLC, the Fund’s sponsor, has recommended, and the Board of Trustees of Exchange Listed Funds Trust has approved, the termination and liquidation of the Fund pursuant to the terms of a Plan of Liquidation,” according to a statement. “Accordingly, the Fund is expected to cease operations and liquidate on or about February 7, 2019.”
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.
