Wall Street Vet Brian Kelly Launches Blockchain ETF

Investment manager Brian Kelly is launching a new blockchain startup-based exchange-traded-fund, he announced Wednesday.

Working in partnership with REX Shares founder Gregg King, Kelly will actively manage a portfolio of roughly 30 companies actively using blockchain technology and matching one of four general criteria, he told CoinDesk.

"When I look at the investment landscape, to me blockchain and cryptocurrencies are a once-in-a-lifetime investment opportunity ... if I look at every other asset class, to me the most attractive investment is blockchain and cryptocurrency. The growth is explosive [and] the potential is enormous."

The four criteria, or "Pillars," include enterprise blockchain, or companies using the technology to streamline existing business processes; "Wall Street disruptors," that is, services changing how securities are traded; mining focused entities; and exchange firms and startups creating a decentralized internet, he said.

Further, the fund will evolve over time, Kelly said, noting that "This is an active ETF [so] we'll be able to add companies to the space."

Kelly cited the progress companies have made in developing blockchain technology over the last year as the reason for the ETF, saying that firms were "Finally getting some revenue from blockchain and cryptocurrency. Even a year ago you had a few who were doing it, but they didn't have significant revenue streams."

Now, with some companies even receiving bank financing, Kelly expressed confidence that he could "Put together a diversified portfolio."

Neither is Kelly worried about the volatility seen in cryptocurrency markets.

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