Investors who are averse to investing in bitcoins have now the opportunity to tap the excitement surrounding the cryptocurrency by investing in ETS that invest on blockchain technology to cut costs.
Investors looking to tap the excitement surrounding bitcoin technology are likely to get a new opportunity this week since from Wednesday, the shares they purchase of companies including, Overstock.com Inc, Hitachi Ltd and Accenture plc, will benefit from Bitcoin’s underlying technology.
Rather than risk the trade in wildly fluctuating “cryptocurrencies” themselves, a few funds, such as Reality Shares Inc and Amplify Investments LLC are launching exchange-traded funds (ETFs) that invest in companies that bet on blockchain, the underlying decentralized technology that tracks and maintains the records of bitcoin transactions.
Companies across the board from Intel Corp, JPMorgan Chase & Co to Microsoft Corp have stated that blockchain can help streamline processes, such as settling financial transactions.
According to sources familiar with the matter at hand, the U.S. (SEC) insisted that ETFs do not include the word ‘blockchain’ in their names if the stocks do not directly collect a significant portion of their revenue from that technology.
The funds, Amplify Transformational Data Sharing ETF and Reality Shares Nasdaq NexGen Economy ETF, will nevertheless trade with the tickers BLOK and BLCN.
The backers of Reality Shares have stated that investing in companies who use blockchain technology to cut costs is a more conservative approach to buying bitcoins directly since these companies are dependent on more factors than just that technology succeeding.
Incidentally, the shares of Eastman Kodak Co have more than doubled last week following its statement that it would launch a cryptocurrency called KODAKCoin.
Similarly, the shares of Long Island Iced Tea, a soft drinks maker, have doubled since it disclosed that it shifted its focus to blockchain and changed its name to Long Blockchain Corp.