On Wednesday, Brian Kelly, an investment guru on Wall Street, announced that he is set to start a blockchain-based Exchange-Traded Fund.
According to CoinDesk, Kelly is working with Gregg King from REX Shares, and will be managing about 30 companies that are currently using blockchain technology – and matching one of four general criteria. The upcoming startup will support companies from the early stages onwards.
Blockchain and Crypto Are the Future
Speaking to CoinDesk, Kelly expressed his strong believe that blockchain and cryptocurrency is the new future for investment. He had this to say about blockchain and crypto:
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.
Asked about why he decided to start a blockchain ETF, Kelly said that a lot has been done in developing blockchain technology in the last couple of months. He argued that today, companies that are earning well have earmarked blockchain as their next frontier.
Similarly, he cited that financial institutions are now financing blockchain ventures as the revenue stream from the industry has improved significantly.
Kelly expressed confidence that he can provide a diversified portfolio to compliment what the banks are doing.
The ETF will not be invested in any cryptocurrencies directly, he added – rather, it will be invested in companies with regulated security offerings.
The fund will be open to anyone who has a US brokerage account, including investors who reside outside the country. A person does not have to be an accredited investor to participate.
Asked about whether he was worried about the volatility that is experienced in the industry, Kelly said he is not worried even if his ETF is used to support crypto-based companies.
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,
The Four Pillars
The ETF will be based on four criteria or pillars which consist of:
- Enterprise blockchain, or firms which use blockchain technology to streamline their existing business processes.
- Wall Street disruptors, which will be services that will alter how securities are traded.
- Mining-based firms.
- Exchange companies and startups developing the decentralized Internet.
Kelly said that he wants the fund to evolve over time to include many companies in the space, which are dealing with different aspects of blockchain.
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