The Third Blockchain-based ETF, KOIN, Begins Trading
After the successful launch and trading of the very first two blockchain-based exchange-traded funds, BLCN and BLOK, Innovation Shares LLC (the sponsor) has launched the third. The Innovation Shares NextGen Protocol ETF (KOIN), began trading on the NYSE Arca exchange on January 30th, under the symbol KOIN. The ETF comes with an expense ratio of 0.95%, with a 0.30% fee waiver until March 31st 2019.
Dustin Lewellyn, Ernesto Tong, and Anand Desai have been designated as portfolio managers of the fund. Exchange Traded Concepts LLC serves as the investment advisor, and Penserra Capital Management LLC serves as the sub-advisor to the fund. Exchange Traded Concepts is a private-label ETF advisor, with active and passive exemptive relief from the SEC under the Investment Company Act of 1940 to launch custom domestic and international equity and fixed income exchange-traded funds through a complete turnkey solution.
While a lot, including its holdings, still remains TBD (To Be Disclosed) about the fund at the time of writing, we were able to identify a key differentiating factor for KOIN.
What Differentiates KOIN From the Rest?
KOIN is the first exchange-traded fund to use artificial intelligence (AI) to identify and invest in blockchain innovators and adopters. “Blockchain is a highly innovative technology, and we’re applying an innovative approach to identifying the stocks leveraged to the theme,” said Matt Markiewicz, Managing Director with Innovation Shares. “Our proprietary patent-pending AI based process allows us to better capture a full range of publicly-traded companies that are developing, investing in and utilizing this new protocol.” The index underlying KOIN would screen for global stocks that are believed to have a current or future economic interest in blockchain technology, and harness the power of textual analysis and artificial intelligence, to uncover companies that might otherwise be overlooked by traditional analytical research.
Are you a KOIN Stakeholder?
The company will be using AI to place stocks in one of four custom stakeholder categories, in terms of how they relate to the theme:
- Cryptocurrency as Payment: Companies that accept cryptocurrency as payment for goods or services or are developing blockchain payment solutions.
- Mining Enablers: Companies that either create equipment and / or tools to enable the creation of new blockchains or are mining blockchains as their main business.
- Solutions Providers: Companies engaged as Blockchain as service providers.
- Adopters: Companies that primarily use blockchain technology to increase operational efficiencies, optimize settlement processes, enhance the customer experience and / or increase data security / integrity.