Amplify launches actively managed blockchain ETF

Jan 24th, 2018 | By | Category: Equities

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Amplify ETFs, the firm founded by ETF entrepreneur Christian Magoon, has launched the Amplify Transformational Data Sharing ETF (BLOK US) on NYSE Arca, providing actively managed exposure to global companies leading research and investment into blockchain-based and other distributed-ledger technologies.

Amplify ETFs launches actively managed blockchain ETF

Blockchain is a decentralized database shared across all users that facilitates the process of recording transactions and tracking assets in a business network.

Blockchain is a decentralized database shared across all users that facilitates the process of recording transactions and tracking assets in a business network.

In short, Blockchain technology allows multiple stakeholders to store data in a way that seeks to be convenient, transparent, fast, auditable and resistant to centralized system outages and attacks.

Industries that may see significant disruption due to further developments in blockchain technology include healthcare, cyber security, supply chain management, and banking & payments.

A Gartner report predicts that by 2025, the business value added by blockchain will grow to $176 billion, then surge to $3.1 trillion by 2030.

Amplify notes that, due to the fast developing world of blockchain-based technology, BLOK’s active mandate allows it to respond in real-time to blockchain-related partnerships, IPOs, acquisitions and strategic announcements that often have significant impact on the valuations of companies actively involved in blockchain technology.

The fund’s portfolio is currently somewhat concentrated with 49 holdings, the largest of which are Taiwan Semiconductor (6.2%), Digital Garage (6.1%), Overstock.com (5.6%), SBI Holdings (5.3%), and Square (4.5%). Approximately 70% of the portfolio is invested in large-caps (greater than $10bn market cap), while 19% is in small-caps, offering a slightly higher exposure to the growth potential of these stocks.

The ETF is sub-advised by Toroso Investments and CSAT Investment Advisory, and has a net expense ratio of 0.70% due to a contractual fee waiver in place until at least January 2019. Its gross expense ratio is 0.90%.

As of 24th January 2018, the fund had $164m in assets, suggesting a very strong start out of the blocks.

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