The Ultimate Buzz Word ETF

Matt Thalman - Contributor - ETFs - Buzz Word ETF

On January 30th the team at Exchange Traded Concepts, an Exchange Traded Fund issuer, released the "Ultimate Buzz Word" ETF, the Innovation Shares NextGen Protocol ETF (KOIN). Alright, I’ll admit, the name may not be loaded with buzz words. But the fund’s concept is loaded with recently popular buzz words such as “Blockchain” and “Artificial Intelligence.”

The KOIN ETF is a fund that tracks an index that uses artificial intelligence to pick global stocks which have current or future interests in blockchain technology. On the surface, this ETF just feels like someone trying to take advantage of today’s hot investing buzz words.

Even after Bitcoin rose from under $1,000 to above $19,000 in less than a year, most retail investors didn’t fully understand what blockchain technology was. But they knew that while a lot of big-name investors and economist were skeptical of Bitcoin and other cryptocurrencies’, the one thing most people would agree on was that blockchain technology was great. Continue reading "The Ultimate Buzz Word ETF"

No Bitcoin ETF Yet, But There Are Blockchain ETFs

Matt Thalman - Contributor - Blockchain ETFs

While the Securities and Exchange Commission has yet to approve an actual Bitcoin ETF, it is allowing investors to buy shares of ETF’s which are focused on the technology which makes cryptocurrencies tick, the blockchain.

After the explosion of Bitcoin back in the fall when the price of one coin jumped from around $4,000 to over $19,000, a number of different companies began clamoring to get involved in cryptocurrencies directly or just in the blockchain technology, and that is where these Exchange Traded Funds are focused. The thinking is that while you may not want to invest directly in a cryptocurrency, you may still want exposure to it through the businesses that help it operate.

For example, you could buy Square Inc. (SQ), the payment processing company that a few weeks ago announced it would now allow customers to pay with Bitcoin. Or perhaps it is through a less direct method of buying shares of NVIDIA (NVDA), the semiconductor company, which produces the microprocessors that are needed to make cryptocurrencies a reality. Or lastly, perhaps it just a previous beverage company, Long Island Iced Tea Corp. that now wants to get into blockchain and changes its name out of the blue to Long Blockchain Corp. (LBCC).

The first blockchain ETF to hit the market was Continue reading "No Bitcoin ETF Yet, But There Are Blockchain ETFs"