CNBC’s Brian Kelly to Launch a Suite of Cryptocurrency ETFs

CNBC’s Brian Kelly to Launch a Suite of Cryptocurrency ETFs

Jan 5, 2018

CNBC contributor Brian Kelly has announced a partnership with exchange-traded fund (ETF) provider REX Shares to launch a suite of cryptocurrency ETFs.

CNBC’s Brian Kelly to Launch Suite of Cryptocurrency ETFs

Kelly and REX made the announcement on Thursday, signaling that the products will give investors exposure to the entire cryptoasset and blockchain ecosystem.

“This is exciting because you have not been able to get into this space very easily,” Kelly said on CNBC. “We are going to launch a suite of ETFs that are going to give exposure to the entire ecosystem, across multiple different asset classes” using an ordinary brokerage account.

Though perhaps best known for his financial market commentary on CNBC’s “Fast Money,” Kelly is also the founder of BKCM, an investment firm that specializes in macroeconomics and digital assets. Among BKCM’s offerings is the Digital Asset Fund, a hedge fund that provides investors with exposure to cryptoassets and blockchain companies.

Fund Providers Rush to Bring Cryptocurrency ETFs to Market

The announcement is the latest data point in a flurry of filings from fund providers jostling to bring the first cryptocurrency ETF to market.

While the recent launch of bitcoin futures is an exciting development for the cryptoasset ecosystem in its own right, its wider importance may be that it paves the way for another type of investment product — cryptocurrency ETFs.

Because cryptocurrency spot markets are relatively-unregulated, the US Securities and Exchange Commission (SEC) has been hesitant to approve cryptoasset-derived ETFs that hold the assets directly.

However, many analysts believe that the SEC will lend its approval to ETFs that trade bitcoin futures, which give investors exposure to the price movement of the asset without the custodial risks of engaging with the asset directly.

The first such fund will likely be a Bitcoin ETF, and REX has already filed to list both long and short funds that track the price of bitcoin futures.

However, as Strategic Coin has reported, analysts expect other cryptoassets to be wrapped in futures products within the very near future, and the first is most likely to be ethereum.

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Featured Image from CNBC