A Look Behind the 4th 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.

“The index underlying KOIN was constructed utilizing a natural language processing algorithm that screens for global stocks that are believed to have a current or future economic interest in blockchain technology,” said Innovation Shares. “By harnessing the power of textual analysis and artificial intelligence, companies are uncovered that might otherwise be overlooked by traditional analytical research.”

Companies included in KOIN are engaged in accepting cryptocurrencies for payment, those that create equipment and instruments “to enable creation of new blockchains or are mining blockchains as their main business,” blockchain services providers and those “that primarily use blockchain technology to increase operational efficiencies, optimize settlement processes, enhance the customer experience and/or increase data security/integrity.”

KOIN charges 0.65% per year, or $65 on a $10,000 investment.

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