China Blockchain ETF Filed

May 01, 2018

Reality Shares has filed for another ETF that will focus on blockchain ETFs, but this one will target Chinese companies specifically. The Reality Shares Nasdaq NexGen Economy China ETF will target companies involved in blockchain-related activities located in Hong Kong and mainland China.

Reality Shares rolled out the global Reality Shares Nasdaq NexGen Economy ETF (BLCN) in January, and it has since accumulated $124.5 million in assets under management.

The proposed China fund will focus on companies committing significant resources to developing and using blockchain’s digital ledger technology, including making it more efficient and secure in terms of transactions, according to the prospectus.

Eligibility Requirements

Companies eligible for inclusion must meet size and liquidity requirements, with those included in the final selection pool scored based on their exposure to and likelihood of benefiting from the technology. The index will include 30-100 of the top-scoring companies and weight them based on their scores, the document says.

A-shares, H-shares and ADRs are all eligible for inclusion, and the prospectus notes the fund is expected to have concentrations in the consumer discretionary, financials, industrials and information technology sectors.

The filing does not include an expense ratio or ticker, but it does indicate the fund is slated to list on the Nasdaq stock market.

Contact Heather Bell at [email protected]

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