Reality Shares, an asset management firm, exchange-traded fund (ETF) issuer and index provider, has launched an ETF that gives investors access to China-based companies potentially leading the blockchain technology revolution.
The Reality Shares Nasdaq NexGen Economy China ETF (Nasdaq: BCNA) tracks the Reality Shares Nasdaq Blockchain China Index, which seeks to identify and invest in Chinese companies committing material resources to develop and implement blockchain technology. The index rebalances semi-annually and is comprised of 31 constituents.
“China is quickly becoming a global epicentre for blockchain innovation. In 2017, the nation filed for more blockchain-related patents than any other country in the world1, and the Chinese government recently endorsed blockchain technology as an economic ‘breakthrough,’” says Eric Ervin, CEO of Reality Shares. “China’s blockchain industry presents an incredibly exciting and long-term investment opportunity, and through BCNA, investors can now easily access this emergent market.”
BCNA’s index components are determined by Reality Shares’ proprietary Blockchain Score methodology, which evaluates companies based on seven key factors, including: role in blockchain ecosystem, blockchain product stage, blockchain economic impact, Blockchain Institute membership, research and development expenditure, company filings and innovation. In addition, the fund’s advisory board is stacked with six well-regarded blockchain and cryptocurrency executives who are involved in the research process.
Reality Shares entered the blockchain technology space earlier this year with the launch of the Reality Shares Nasdaq NexGen Economy ETF (Nasdaq: BLCN). BCNA serves as a complementary product to BLCN, offering U.S. investors exposure to Chinese blockchain-related company A-shares for the first time.