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Blockchain ETFs attract $240 million in a single week

Assets of two new blockchain exchange-traded funds (ETFs) increased from $240 million a week to $164.9 million on Wednesday. Since signifying that more people are getting attracted to these kinds of cryptocurrency investments.

The increase comes after several weeks of poor performance of Bitcoin’s price and cryptocurrency sell-off of about two weeks or so. Earlier on, Bitcoin prices drove more investments in cryptocurrencies as the total market value of cryptocurrencies. Since surged above $800 billion earlier this month.

Todd Rosenbluth, CFRA’s director of ETF and mutual fund research, wrote in an email,

“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”.

Amplify Transformation Data Sharing ETF (BLOK) which manages Taiwan Semiconductor Manufacturing and Overstock.com saw the increase in assets from $2 million to $164.9. The Reality Shares Nasdaq NexGen Economy ETF (BLCN) increased nine folds to $86.27 million in just a week. BLCN holds stock such as IBM and SBI holdings.

Also Read: Serpro wants to use blockchain to end corruption in Brazil

The two offer exposure to blockchain technology’s development. The Reality Shares operates like a traditional ETF where the customer can buy a basket of funds cheaply. Amplify acts like an exotic actively managed ETF where a manager can reshuffle its components. Thus to respond in real-time to valuations, company fundamentals, and announcements that may impact the blockchain marketplace.

Reality Shares’ BLCN increased by 1.3 percent while Amplify’s BLOK increased by 1 percent in the last week. The two launched a week ago when Bitcoin prices were down to 50 percent from the high of $20,000 recorded in December.

CEO of Reality Shares Eric Ervin said that the surge in a flow of funds to the ETFMG Prime Cyber Security ETF (HACK) was the closest thing to the growth in BLCN ETF assets. The assets could top $100 million in the next few days according to him.

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David

David Kariuki is a journalist who has a wide range of experience reporting about modern technology solutions including cryptocurrencies. A graduate of Kenya's Moi University, he also writes for Hypergrid Business, Cryptomorrow, and Cleanleap, and has previously worked for Resources Quarterly and Construction Review magazines.

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