Is This Publicly Traded Blockchain ETF a Legitimate Investment? Brian Kelly of BKCM Knows the Answer

August 13, 2018

Brian Kelly is Founder and CEO of BKCM, LLC and Portfolio Manager of REX Shares BKC Blockchain ETF. Mr. Kelly is an investor, author and financial markets commentator. He has over 20 years of institutional investing experience in global financial markets and macroeconomics, and over five years of experience in digital currencies. Mr. Kelly is the author of the book The Bitcoin Big Bang: How Alternative Currencies are About to Change the WorldIn this 3,009 word interview, Mr. Kelly gives his detailed operating results from starting and launching his Blockchain ETF onto the public markets.

“BKCM is a cryptocurrency money management firm. We manage a cryptocurrency hedge fund. We also manage the REX Shares BKC ETF, which is an ETF of global equities that are getting revenues or devoting substantial resources to blockchain and cryptocurrency.”

The ETF trades in the United States with all the protections and regulations of the SEC but has much of its exposure to the global blockchain economy:

“There is a big East/West divide in blockchain technology. A lot of the adoption is happening in Asia, while a lot of the development is happening in the West, at least in the U.S. So our tilt toward Asia really reflects that East/West divide. What we are looking to do is to invest in companies that are actually deploying this technology, supporting the ecosystem and supporting adoption, and those tend to be the Asian companies. Japan, for example, is the largest bitcoin trading country in the world. It typically trades 40% to 50% of the daily volume of bitcoin on a regular basis. The tilt toward Asia reflects that reality.”

The valuation of the ETF is entirely dependent on the continued growth of blockchain technology:

“The biggest thing is that people get so focused on the price of cryptocurrencies that they miss the fundamental technology behind this. This is ultimately the internet of money. So we have kind of had three variations of the internet: the internet of information, which is the internet that we know that really caught fire in the 1990s; then the internet of things, which is how machines interact with each other; and now the internet of money. In my view, this last one is going to have a similar, if not a bigger, impact on the world than we saw with internet of information. You are able to have access to money and move it around like you have never seen before.”

Read the complete detailed interview in the Wall Street Transcript.