- August 17, 2018
- Category: Bitcoin, Business, Updates
Blockchain is going big. For blockchain startups looking for that extra bit of money, Reality Shares might just be what they need to turn to.
Small asset management firm Reality Shares is going to launch their $100 million hedge fund based on cryptocurrency. An index provider and blockchain exchange-traded fund (ETF) issuer, Reality Shares aims to make the fund available for companies implementing blockchain technology.
The fund will give investors the chance to support blockchain based companies in China. Reality Shares Nasdaq NexGen Economy China ETF (BCNA) will be tracking the Nasdaq Blockchain China Index. The Index supports and allocates material resources to Chinese companies that develop and harness blockchain technology.
With quite a few popular players under its umbrella, from DHC Software to Jiangsu Zhongnan Construction, it does look promising. According to Morningstar, the expense ratio is going to be 0.78%.
What Reality Shares Will Bring to The Table?
Eric Ervin, CEO of Reality Shares said that the blockchain industry in China offers an exciting and lucrative option for long-term investment. Investors can get their hands on the emerging maRket through the BCNA and look to get good returns on their investment.
BCNA will include 50 to 100 companies at any given time. The companies are chosen carefully. For one, they must dedicate their material resources for the following:
- Supporting blockchain technology
Earning The Right Blockchain Score To Qualify
The companies have to earn a high blockchain score to qualify. Only then are they included in the underlying index and BCNA. The score is determined based on some standards such as:
- Blockchain product development stage
- Contribution to blockchain ecosystem
- The economic impact of the blockchain
- Research and development investments
- Blockchain Institute membership
- Blockchain innovation and company filings
Ervin added that the blockchain ecosystem is one of the most promising and long-term investing opportunities. Blockchain technology is still in its nascent stage and going to have far-reaching and disruptive effects across all industries. To realize the full potential of the opportunity they have partnered with other groups like Nasdaq. The move aims to help blockchain companies and become the leading name in blockchain investing.
The hedge fund will have a capping of $100 million. $25 million out of it has already been reportedly committed. The fund will be a multi-strat one, combining venture, arbitrage and directional strategies.
Reality Shares will be facing tough competition. It will compete against 366 other funds dedicated to digital assets, according to Crypto Fund Research.