Two blockchain ETFs launched on Nasdaq Wednesday.
- The U.S. Securities and Exchange Commission told the companies to change their names to remove the word ‘blockchain’ amid fear that the word could make the companies’ share prices soar.
- The Reality Shares fund went live on the Nasdaq exchange at 9:30 a.m. EST, and the BLOK fund went live on NYSEArca. BLCN opened at $24.20 and BLOK at around $20.
- The two ETFs will invest exclusively in blockchain-based companies.
- However, they will limit themselves to only investing in companies with a market capitalization of greater than $200 million, as well as a six-month daily trading average of at least $1 million.
- The SEC didn’t formally approve the ETFs, but the current law means that the blockchain ETFs were automatically approved under the current law.
- The agency now has 75 days to contest the move, issuing a disapproval or objection to an ETF filing. If no such disapproval or objection arrives from the SEC, the funds can be listed.
- Reality Shares has worked with Nasdaq to develop an index that tracks blockchain startups, which the ETF will use thanks to an algorithm developed by the company.
Other companies have filed for blockchain-based ETFs in the past but none have made it as far as these two in the past.