Horizon Kinetics Launches Blockchain Development Exchange Traded Fund
Horizon Kinetics LLC announced the launch of its second exchange-traded fund, the Blockchain Development ETF (NYSE Arca: BCDF). The actively managed fund began trading on the New York Stock Exchange on Tuesday.
BCDF seeks to invest in the equity of companies that can benefit, either directly or indirectly, from the issuance, facilitation, custody, trading and administration of digital assets, including cryptocurrencies.
Murray Stahl, founder, CEO and CIO of Horizon Kinetics, said in a press release that the firm has “closely felt the rise of blockchain technology for many years,” and that “the applications of blockchain technology have the potential to become widespread and substantial.”
“The move toward tokenization is likely to have a profound impact on operations and security in a number of ways,” Stahl said. “Blockchain development companies facilitate the issuance, transfer and custody of such digital assets by and between other companies.”
Blockchain development companies may include financial or other exchanges, custodian banks, asset managers, blockchain-related software companies, payment processors and mining companies, among others.
“Blockchain provides opportunities for both emerging and established companies to create solutions that advance the current capabilities of what we know,” said Brandon Colavita, co-portfolio manager. “The technology is not contingent on the success of an existing token, and our investments will be allocated in a way that is not dependent on a single cryptocurrency or protocol.”
Colavita added: “We believe blockchain is here to stay, although its use is still widely misunderstood by industry participants. Our proactive approach allows us to focus on quality companies with applications that we feel provide the greatest value to our customers over time.”
In January 2021, Horizon Kinetics LLC announced the launch of its first ETF, the Inflation Beneficiaries ETF (INFL)an actively managed ETF that targets unique, scalable businesses that have the potential to thrive in an inflationary environment.
“Horizon Kinetics crashed the ETF party in early 2021 with a highly successful inflation-focused equity ETF that showcases the firm’s active management capabilities,” said Todd Rosenbluth, head of research at VettaFi. “It’s great to see the company expand and bring a new product to market.”
Although BCDF represents an emerging segment of the market that has not been typical of Horizon Kinetics’ investments, BCDF will be managed using the same long-term, value-oriented and research-driven philosophy that has guided the management of the firm’s other products.
“Our value-driven, fundamental analysis will drive our individual security selection for the fund,” Colavita said. “Furthermore, we believe we can identify a number of companies with solid fundamentals and trading at attractive values relative to their intrinsic value.”
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