In the U.S., the world’s largest exchange traded funds (ETFs) market, there are four ETFs offering investors exposure to blockchain technology. All four of those funds debuted earlier this year. The newest of the four is the Innovation Shares NextGen Protocol ETF (NYSEARCA:KOIN), which debuted in February.
Data suggest investors are warming up to KOIN. The fund is the first ETF “to use artificial intelligence to identify and invest in blockchain innovators and adopters,” the issuer said. The ETF debuted at the end of January.
As of April 12th, KOIN had over $12.6 million in assets under management, according to issuer data. That is not a particularly large sum in the world of ETFs, but it shows KOIN is off to a decent start. More importantly, investors have recently been taking note of the ETF. Of its $12.6 million in assets under management, $7.05 million has flowed into KOIN since the start of April.
KOIN’s Issuer Defines Blockchain
“Blockchain is a new digital protocol for authentication and authorization that allows parties to bypass a centralized administrator,” according to Innovation Shares, KOIN’s issuer. “To give this basket a more defined framework, stocks are placed in one of four custom stakeholder categories in terms of how they relate to the theme: Cryptocurrency as Payment, Mining Enablers, Solutions Providers and Adopters.”
KOIN holds 42 stocks, including well-known companies such as Visa, Inc. (NYSE:V), Amazon.com Inc. (NASDAQ:AMZN), Oracle Corp. (NYSE: ORCL), NVIDIA Corp. (NASDAQ:NVDA), and American Express Co. (NYSE: AXP). Semiconductor maker NVIDIA is one of the largest producers of the graphics cards essential in the mining of digital currencies.
KOIN “seeks to give investors access to companies that may benefit from a technology that has the potential to revolutionize the way global trade is conducted, data is secured, supply chains are managed, financial instruments are cleared and contracts are recorded,” according to the issuer.
Components in KOIN must have minimum market values of $100 million. The ETF charges 0.65% per year, the equivalent of $65 on a $10,000 investment.
Bitcoin Price Rallies 13% to Break Through $11,000
Within the last hour Bitcoin (BTC) price pushed through the $11,000 level in a high volume surge which saw the price reach a new 2020 high at $11,394.
At the time of publishing the price has pulled back slightly to the $11,150 range but purchasing volume continues to rise on the 1-hour timeframe. This suggests that the top-ranked digital asset on CoinMarketCap may have another go at the daily high.
Crypto market weekly price chart. Source: Coin360
As reported earlier by Cointelegraph, on-chain activity registered a significant spike in exchange inflow as Bitcoin price rallied above $10,000 and Bloomberg analysts now estimate that Bitcoin price will rise above $12,000 this year.
Ether price (ETH) also surged above its previous high by rallying to $333.52 but at the time of writing the top altcoin has pulled back below $330.
Bitcoin daily price chart. Source: Coin360
Also, don’t miss our upcoming conference Cointelegraph Crypto Traders Live.
More than 30 star speakers including Raoul Pal, John Bollinger, Mike Novogratz, DataDash and Jon Najarian will gather on July 30th to discuss the challenges of crypto trading. Join the show for over 9 hours of crypto trading content!
33 CryptoCurrencies In 4 Words Or Less
We put together this list to describe the top cryptocurrencies that are worth your time in 2019.
Each gets four words. There are many!
Hopefully this provides orientation.
Scroll Down To View An Awesome Infographic from MrBtc.org!
Ripple Hunting For Unicorns With $25M Blockchain Investment
Ripple, also known by the symbol “XRP,” is putting its money where its mouth when it comes to investing in blockchain technology startups. Ripple is putting $25 million worth of XRP into a blockchain venture fund, a move that could increase adoption and use of XRP.
Ripple is investing in San Francisco-based Blockchain Capital. That company, founded in 2013, “is one of the oldest and most active venture investors in the blockchain technology sector, and has financed 72 companies, protocols and tokens since its inception. We are multi-stage investors and invest in both equity and crypto assets,” according to its website.
The $25 million contribution to Blockchain Capital was made in XRP, not dollars. Last month, Blockchain Capital announced the closing of Blockchain Capital IV, LP a $150 million fund. The company “has invested in 72 companies, protocols, and tokens, including Coinbase, Ripple, Circle, Ethereum, 0x and Kraken,” it said.
This is the first venture fund Ripple has contributed to and it is likely it will continue seeking related investments.
“We want smart people and smart entrepreneurs, who can solve a problem using Ripple,” Cory Johnson, chief market strategist at Ripple, told CNBC in an interview Wednesday. “There’s money sitting there to be used.”
More About Ripple
As of this writing Wednesday, XRP was the third-largest digital currency by market value behind bitcoin and ethereum. XRP traded at an all-time high of $3.84 in January but labored around 50 cents at this writing. Its market capitalization is $19.62 billion. The supply of XRP is capped at 100 billion, of which Ripple controls 60 billion.
Ripple uses a blockchain technology known as the “Enterprise Blockchain” ledger. XRP is used by some banks and other financial institutions, such as American Express and Western Union, and allows users to send, receive and hold any currency on a secure, decentralized network.
Ripple technology is more secure than those of rivals, including bitcoin and XRP transactions settle rapidly, in as little as four seconds.