Blockchain ETF To Close

January 28, 2019

On Friday, one of the six ETFs covering the blockchain space halted creations, with the fund’s final shutdown scheduled for Feb. 5. The REX BKCM ETF (BKC) only had about $5 million in assets under management (AUM).

With the rise in popularity (and the price) of bitcoin in late 2017 to early 2018, there was a strong push to launch a bitcoin ETF, but given the delays caused by regulatory issues, many firms turned to capturing the performance of companies driving the technology that underlaid the bitcoin concept.

Blockchain is a type of digital ledger that is difficult to hack, and many firms are implementing its use for concepts other than cryptocurrencies.

Several funds tracking blockchain-related equities rolled out in January 2018, but REX was a little late to the party, with the launch of BKC in May. The ETF never gathered much in the way of assets, while one of the first-to-market funds, the actively managed Amplify Transformational Data Sharing ETF (BLOK), today has roughly $118 million in AUM.

Interestingly, none of the blockchain ETFs has seen much in the way of new assets since the initial hubbub around their launches (read: Blockchain ETFs Stumble Out Of The Gate).

With BKC’s shutdown set for a little less than two weeks from now, the total closures for 2019 will rise to three. That’s a number to watch given the record number of closures we saw in 2018 (152). 

Contact Heather Bell at [email protected].

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