Brian Kelly, a Wall Street investment manager launches a blockchain-based exchange-traded-funds (ETF), reported Coindesk on May 16.
Kelly will be working in collaboration with REX Shares founder Gregg King and will be managing the portfolio of 30 companies using the blockchain technology actively and matching one of four general criteria.
“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 criteria include blockchain companies, or enterprises using the technology to streamline present business processes: mining focused entities, exchange firms, startups developing a decentralized internet, and “Wall Street disruptors”, he expressed.
Kelly also said that the fund will evolve and it will serve to help firms from the seed stage onward. More companies will be added later he mentioned.
Currently, some money will possibly be invested in enterprise companies but he noted that “over time we might become 100 percent pure play.”
Rather than investing directly in cryptocurrencies, the ETF will invest in blockchain companies with regulated security offerings.
The reason why Kelly is launching is an ETF is because of the major progress blockchain companies have made during the last year.
“Finally getting some revenue from blockchain and cryptocurrency. Even a year ago you had a few who were doing it, but they didn’t have significant revenue streams.”
He is not concerned about the volatility of cryptocurrencies as his exchange-traded-funds will be investing in companies dealing with a multitude of 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.”