Investment Firms, AdvisorShares And Sabretooth Advisors Launch ETF For Tracking Blockchain Companies And Cloud Computing

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According to a report published by MarketWatch on the 6th of February, two firms in the United States have launched an ETF that can track technology companies that use cloud computing and blockchain technology. One of the firm is AdvisorShares, an investment management firm while the second is Sabretooth Advisors, an investment advisory firm. The exchange-traded fund will track these blockchain and cloud-computing related companies.

Exchange-traded funds are securities that are marketable. These securities can track a basket of assets that are proportionately represented in shares of the funds. They can be offered in different asset classes including currencies and commodities. This allows investors to try out short markets and gain leverage.

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With this new ETF by AdvisorShares and Sabretooth Advisors, which is set to be debuted today, the 7th of February 2019, things may change for blockchain technology. The ETF will help these blockchain and cloud-computing related companies to increase their profits and share prices within a short time.

What Does The Emergence Of ETFs Mean For The Blockchain Industry

There have been mixed feelings associated with the emergence of blockchain and cryptocurrency ETFs. Some believe it is a sign of maturity in the cryptocurrency and blockchain market. Others aren’t so sure this is a good idea.

Last year, the regulators in Canada approved the first ever ETF for blockchain technology in the country. This ETF is focused on both large and small scale corporations that use blockchain technology. At the time the approval was given, the issuer already had their Harvest Portfolios Technologies Index. This index was designed specifically to track issuers in small and large market capital cryptocurrencies.

Towards the end of January this year, CBOE, SolidX and VanEck applied for a change in the Bitcoin ETF rule book for the second time. Keep in mind that the firm initially filed for this change in June 2018. However, during the 35-day US government shutdown, the application was withdrawn. Experts suggested, at the time, that the companies involved decided to withdraw their applications because they were afraid that the shut down was going to interfere with the SECs ability to make a decision on the matter.

You see the SEC had postponed the date for its decision on the Bitcoin ETF application many times in the past. So, the date set in February was meant to be the last day for a final decision according to the law. If the SEC didn’t make a decision on that day, they would not have postponed it again. Instead of missing the last chance to get approved, VanEck and Co decided to withdraw the application.

Now that the government is fully functional, the SEC can focus on clearing backlogs and eventually make the long-awaited decision about the Bitcoin ETF.

Do you think the SEC will finally approve the VanEck Bitcoin ETF after all this time and delays? Share your comments.

Ufuoma Ogono is a cryptocurrency writer with over 3 years experience in the cryptocurrency industry. She dedicates her time to sharing valuable information to members of the cryptocurrency community.

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