For Immediate Release
Chicago, IL – Jun 27, 2018 – Today, Zacks Investment Ideas feature highlights Features: Blockchain Equity ETF (BKC - Free Report) , Nvidia (NVDA - Free Report) , Chicago Mercantile Exchange (CME - Free Report) , CBOE Global Holdings (CBOE - Free Report) and Goldman Sachs (GS - Free Report) .
Investing in Bitcoin with a Blockchain ETF
Many investors are interested in the concept and technology of Bitcoin, but don’t necessarily want to open a Bitcoin account (called a “wallet”) or trade Bitcoin futures because of uncertainty about price volatility. The price of the crypto currency in U.S. dollar terms has fluctuated significantly over the past year, going from $6,000 to almost $19,000 and recently settling back near $6,000. That’s probably an unacceptable level of volatility for most investment and retirement accounts.
One sound way to gain exposure to the concept without direct exposure to the price of the currency itself is to invest in the companies that produce the goods and services that support the decentralized distributed ledger called the Blockchain that underlies Bitcoin and other crypto currencies.
Initially developed to facilitate and document transactions in Bitcoin, the Blockchain has enormous promise to change the way information and transactional data are shared and stored. It has obvious applications in the business of financial transactions due to its speed and inherent security as well as its potential to remove the middlemen – and their added fees – from banking transactions and trading in securities like stocks, bonds and derivatives.
The legal and medical industries and countless others could also benefit form the speed and security of distributed ledger technology.
Proponents believe that the Blockchain will revolutionize our digital lives by reducing transaction times, improving security and reducing errors. True zealots believe it has the potential to be just as disruptive to the ways we transact business as the internet was in the early 1990’s and the rate at which it is being adopted does suggest that widespread acceptance could be just around the corner.
Brian Kelly is a CNBC commentator, hedge fund manager and author of the book Blockchain Big Bang. He is one of Wall Street’s foremost experts on crypto currency trading and the Blockchain. He recently partnered with REX Shares to create a BKC – The Blockchain Equity ETF.
The concept of the ETF is to offer investors an actively managed basket of stocks in companies that are involved in various aspects of the nascent Blockchain industry. The fund invests in four main categories – Wall Street Disruptors, Crypto Miners and Traders, Enterprise Blockchain Leaders and Decentralized Internet Builders.
Just as is the case with index and sector ETFs, shares in BKC can be bought or sold just like any stock.
Current holdings in BKC include companies that are invested exclusively in Blockchain, including dedicated crypto stocks in Asia like Global Unichip and GMO Internet, hardware manufacturers like and Nvidia, both the Chicago Mercantile Exchange and CBOE Global Holdings and the investment bank Goldman Sachs.
Kelly will manage the holdings actively, which makes the fund more agile than a passive ETF that holds only the exact components of an index.
When asked about the role he sees BKC playing in an individual investor’s portfolio, Kelly responded that investors should treat this as one of their more speculative investments and suggested an allocation of 5% or less of a diversified portfolio, with above average risk, but potentially huge return potential. He also sees this fund as a long-term investment- rather than a trading vehicle - as success is expected to be achieved over years or even decades as Blockchain gets adopted in a wide range of industries and sectors.
For investors who are intrigued by the concepts of crypto currency and Blockchain technology, but who aren’t interested in holding actual Bitcoin or other currencies, the Blockchain ETF is a way to gain exposure in the space with more typical equity investments.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana. Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Follow us on Twitter: https://twitter.com/ZacksResearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks Investment Research
800-767-3771 ext. 9339
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.