KOIN: A New Institutional Styled Blockchain ETF
Joining the frenzy over blockchain technology, Innovation Shares has partnered with Exchange Traded Concepts in launching a new blockchain-related ETF backed by a patent-pending, institutional-level investment methodology.
On Tuesday, Innovation Shares launched the Innovation Shares NextGen Protocol ETF (NYSEArca: KOIN), which has a 0.65% expense ratio.
The NextGen Protocol ETF is the first ETF to incorporate a patent-pending artificial intelligence-driven process to identify and invest in blockchain innovators and adopters.
Specifically, the new ETF tries to reflect the performance of the Innovation Labs Blockchain Innovators Index, which is comprised of companies that that use or are involved in the blockchain technology, according to a prospectus sheet.
“The approach we are taking is very different from the normal indexing methodology,” Matt Markiewicz, Managing Director at Innovation Shares, told ETF Trends in a call. “We take a lot of the security bias out of the selection process.”
A blockchain is a decentralized database shared across all users that facilitates the process of recording transactions and tracking assets across a business network. This foundational technology is expected to pave the way for significant disruptions across many industries.
The underlying index follows a proprietary algorithmic stock selection methodology that begins with companies listed in developed and emerging markets countries; have a minimum marke capitalization of $100 million and a minimum average daily traded value for the last 6 months greater than or equal to $1 million; and have a minimum free float market capitalization equivalent to 10% of shares outstanding.