Investors Pour Some $240 Million Into New ‘Blockchain’ ETFs
The move came despite the fact that Bitcoin wasn’t doing very well last week. The size of the investments was a bit of a surprise for experts in the field.
The cryptocurrency excitement has gradually been transformed into a more practical area, as investors allocated millions of dollars into two recently created blockchain-focused exchange-traded funds.
The overall amount of investments reached $240 million this week alone, according to FactSet data.
“It is rare for new ETFs to pull in such a large amount of cash,” Todd Rosenbluth, director of ETF & mutual fund research, CFRA, was quoted by CNBC as saying.
The increase in interest came despite Bitcoin’s stagnation last week. The world’s most widely known cryptocurrency dropped by nearly 7 percent, to about $10,800 on Friday on Coinbase, which is the leading US exchange for digital currencies.
Blockchain is the technology applied to record and store transactions in cryptocurrencies such as Bitcoin.
The first blockchain-based exchange-traded funds (ETFs) were launched on January 17 on Nasdaq and the New York Stock Exchange Arca. They are expected to exclusively invest in blockchain-based companies.
