Brian Kelly Reveals about Launching Blockchain ETF
Kelly will be partnering with REX Shares founder Gregg King and will actively manage a portfolio of roughly 30 companies actively using blockchain technology and match one of four general criteria. The fund will support firms from the seed stage onward.
Kelly also revealed:
“When I look at the investment landscape, to me blockchain and cryptocurrencies are a once-in-a-lifetime investment opportunity … if I look at every other asset class, to me the most attractive investment is blockchain and cryptocurrency. The growth is explosive [and] the potential is enormous.”
The four norms, or “pillars,” include enterprise blockchain, or companies using the technology to streamline existing business processes; “Wall Street disruptors,” that is, services changing how securities are traded (such as Overstock.com’s tZero exchange); mining focused entities; and exchange firms and startups creating a decentralized internet, he said.
Moreover, the fund will progress over time, Kelly said, mentioning that, “this is an active ETF [so] we’ll be able to add companies to the space.”
Presently, the fund could be invested in some enterprise companies, he believes that “over time we might become 100 percent pure play,” or entirely invested in blockchain-specific startups.
Kelly meant that the ETF will not be used for any cryptocurrencies directly, he clarified- rather, it would be invested in companies with governed security offerings.
The fund can be used by anyone who has a U.S. brokerage account, he mentioned, involving investors who reside outside the country. A person does not have to be a licensed investor to participate.
Kelly specified that the progress companies have made in developing blockchain technology over the last year is the reason for initiating the ETF.
He included :
“The establishments were ultimately getting some revenue from blockchain and cryptocurrency. Even a year ago you had a few who were doing it, but they didn’t have large revenue streams.”
Kelly, however, doesn’t seem to be worried about the unstable behaviour of the cryptocurrency markets. Although his ETF will be invested in companies working with various crypto assets.
“With all investments obviously there’s risk, and the volatility of bitcoin versus equities can change, historically bitcoin has been volatile. That being said we don’t know what the future holds – as more people and more investments come into cryptocurrencies those potentially could actually become less volatile.”