The first ever Blockchain ETFs from Amplify Transformation Data Sharing and Reality Shares Nasqaq NexGen have hit the ground running, attracting a combined sum of $240 million from investors in the first week of business.
Big Spenders in the Bear Market
According to data from FactSet, investors have not ceased pouring their funds into the two Blockchain ETFs since their launch last week. Analysts believe the surge of interest is partly due to the market corrections which brought on a bear market that has refused to leave for some weeks now. The world’s flagship cryptocurrency has fallen nearly seven percent in the past week, hovering between $10,800 to $11,600.
“It is rare for new ETFs to pull in such a large amount of cash, but there has been pent-up demand for a thematic approach to gain exposure to Blockchain.”
Within a week, the BLCN ETF’s assets under management multiplied over nine times to $86.27 million.
The CEO of Reality Shares, Eric Ervin, declared that this is only the tip of the iceberg and that investors are in for a jolly good bullish ride to the moon. He said,”It’s the first in a series of products we’re going to be pushing into space.” Ervin estimates the BLCN ETF assets will surpass $100 million in the coming days.
Amplify’s BLOK is gaining by one percent, while Reality Shares’ BLCN is on the greener side with 1.3 percent. The rush of investors into the Blockchain ETFs is just an extension of the bitcoin craze that has taken over the world.
Assets under Amplify Transformation Data Sharing ETF (BLOK) also skyrocketed to $164.9 million on Wednesday from just $2 million the previous week. Some of Amplify’s top holdings include Taiwan Semiconductor Manufacturing and Overstock, as recorded by Factset.
It’s been a bounty harvest for Taiwan Semiconductor as the Chipmaker has reported massive sales owing to the enormous demand from cryptocurrency miners. The e-commerce giant Overstock also has a department whose primary duty is developing and investing in viable Blockchain-based businesses.
Navigating Hardwork and Appended Names
The Reality Shares Nasdaq NexGen Economy ETF (BLCN) holds stocks in tech giants, International Business Machines Corp. (IBM), which has been active in the Blockchain technology sphere for years now. Reality Shares is also interested in and has stocks of SBI Holdings, a reputable Japanese firm working with Blockchain-based digital currencies.
The two companies, however, have been careful to sidestep fraudulent behavior. In 2017, for instance, bitcoin breached the $20k price area for the first time, gaining the attention of many businesses, with some firms announcing plans to change their business strategy to a Blockchain related stuff.
Some weeks ago, BTCManager reported that the SEC had suspended the stocks of a Hong Kong firm citing unusual trading activities after the company had incorporated the term Blockchain into its name.
In a message to investors, CEO of Amplify, Christian Magoon, and CEO of Reality Shares, Eric Ervin, also warned people to be wary of buying the stocks of fake Blockchain firms. Moreover, the SEC requested that both ETFs completely removed the Blockchain term from their names.
The post New Blockchain ETFs Simply Irresistible for Investors; Pulls in $240 million in One Week appeared first on BTCMANAGER.
Source: BTC Manager