The Innovation Shares NextGen Protocol ETF (NYSEARCA: KOIN) debuted Tuesday, becoming the fourth blockchain exchange traded fund to come to market this month.
“KOIN tracks an index designed to give investors exposure to global stocks that are participating in the growth of blockchain technology, which is being applied across a number of industries.” said Innovation Shares in a statement. “KOIN’s underlying index places stocks in one of four categories based on how they relate to the theme: 1. Cryptocurrency as payment; 2. Mining enablers; 3. Solutions providers; and 4. Adopters.”
BLOK utilizes an actively-managed approach to investing in the fast developing world of blockchain-based technology, allowing the fund’s portfolio managers to respond in real-time to valuations, company fundamentals and announcements that may impact the blockchain marketplace.
The Amplify Transformational Data Sharing ETF (NYSEARCA: BLOK) and the Reality Shares Nasdaq Blockchain Economy ETF (NASDAQ: BLCN) were the first two blockchain ETFs to debut with the First Trust Indxx Innovative Transaction & Process ETF (NASDAQ: LEGR) launching last week.
BLOK utilizes an actively-managed approach to investing in the fast developing world of blockchain-based technology, allowing the fund’s portfolio managers to respond in real-time to valuations, company fundamentals and announcements that may impact the blockchain marketplace.
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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