Blockchain-focused ETF Announced By Investment Management Firm AdvisorShares

Announcements, Blockchain, News | February 7, 2019 By:

Investment management firm AdvisorShares has announced that its exchange-traded fund (ETF) that tracks digital companies implementing emerging technologies like blockchain will commence trading on the Nasdaq exchange today.

Based in Bethesda, Maryland, AdvisorShares is an investment management firm that offers actively managed ETFs through the AdvisorShares Trust. AdvisorShares launched its first active ETF fund in 2009. By 2014, the firm had 24 active ETFs and $1.83 billion under management. By August 2018, it had 17 ETFs with an average expense ratio of 1.12% and only $817.6 million in assets under management.

Called AdvisorShares Sabretooth ETF (BKCH), the new ETF has been launched in partnership with investments advisory company Sabretooth Advisors. BKCH invests in US-listed equities and American depositary receipts (ADRs) of digital and cloud companies implementing emerging technologies, such as digital ledger technology (DLT) and blockchain.

“The investment thesis for BKCH holds that companies utilizing cloud computing and digital companies implementing emerging technology like blockchain can realize increased profitability and appreciation in stock prices over an extended time horizon,” AdvisorShares said.

AdvisorShares believes that blockchain and DLT represent the future of technological record-keeping and information exchanging which can deliver a durable investment theme for growth equity opportunities and long-term performance.

“The application of blockchain transcends cryptocurrency and can serve multiple spaces as this emerging technology can allow companies to reduce costs in multiple areas, improve efficiencies and greatly enhance information security since data is not stored on a centralized server,” the company said. “Such innovation can potentially bring immediate impacts in the financial and technology sectors as well as future growth opportunities in healthcare and other sectors.”

In January 2018, Nasdaq approved Reality Shares’ NexGen Economy ETF which tracks the Reality Shares Nasdaq Blockchain Economy Index. The index is made up of companies committed to researching, implementing, supporting, and applying blockchain for different use cases.