WESTPORT, Conn.--(BUSINESS WIRE)--REX Shares, LLC (REX) and Brian Kelly, CEO and Founder of BKCM Funds, LLC (BKCM), today announced the launch of the REX BKCM ETF (NYSE Arca:BKC). Brian Kelly will serve as portfolio manager of the fund, actively managing a portfolio of companies seeking to profit from, the advancement of blockchain1 technology and the rise of cryptocurrency2 adoption.
“I get asked all the time on how to invest in blockchain technology without dealing with storage, the fears of hacking, hedge funds, etc. My hope is the BKC ETF can provide this desired equity allocation to institutions and individuals alike,” said Brian Kelly, CEO of BKCM and BKC ETF Portfolio Manager. “What excites me most, is that this opportunity may be really early on in its investment cycle.”
With over 30 industries exploring the use of blockchain, the emerging technology may fundamentally transform the way business is transacted. This disruptive innovation could impact supply chains, healthcare, governments, and financial services companies, among others.
“Due to the dynamic nature of the global blockchain and cryptocurrency ecosystem, we wanted a skilled active manager with deep blockchain experience,” said Greg King, CEO and Founder of REX Shares. “Having established himself as a leading hedge fund manager, author, and thought leader in the space, we’re excited to be partnering with Brian on the BKC ETF.”
“Brian’s deep understanding of the crypto and blockchain ecosystem, combined with his background as a global-macro portfolio manager brings true blockchain experience to the ETF world,” said Thomas Lee, Managing Partner and Head of Research at Fundstrat Global Advisors. “The BKC ETF really stands out because of the level of crypto industry connections and access that Brian has at the wheel.”
About REX Shares
REX Shares believe in empowering investors. We help make the investing world flat by democratizing access to investment strategies of all kinds. REX overcomes barriers to deliver investment products that seek to level the playing field. REX was founded by Greg King, creator of over 85 exchange-traded products for Barclays, Credit Suisse, Global X Funds, and VelocityShares.
Founded by Brian Kelly, BKCM Funds, LLC is an investment firm specializing in macroeconomics and digital assets. Brian Kelly is an investor, author, and financial markets commentator. He is an expert in global financial markets, macro-economics, and digital currencies. Brian Kelly has over twenty years' experience in financial markets and is the author of the book The Bitcoin Big Bang – How Alternative Currencies are About to Change the World. He is a CNBC contributor and can be seen regularly on Fast Money.
Disclosures & Definitions
1Blockchain is a decentralized, digitally disseminated ledger of data. The basis of a successful blockchain system is once a new group of information, or “block”, is added, the information automatically disseminates and is downloaded to each computer on the network. This assures that if one computer tried to change information on a block, the consensus of all the other computers’ blocks would triumph. This process renders all information on a completed block decentralized and theoretically permanent.
2A cryptocurrency is a digital currency typically utilizing a Blockchain system for transaction records and cryptography for security. The major differentiator from physical currency is it isn’t issued by a central authority and thus theoretically acts independently of traditional banking and government influence.
Exchange Traded Concepts, LLC serves as the investment advisor and Vident Investment Advisory & BKCM Funds, LLC serves as sub advisor to the fund. The Funds are distributed by Foreside Fund Services, LLC., which is not affiliated with Exchange Traded Concepts, LLC or any of its affiliates.
Shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Rex NAVs are calculated using prices as of 4:00 PM Eastern Time. The closing price is the Mid-Point between the Bid and Ask price as of the close of exchange. In addition to the normal risks associated with investing, international investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations. In emerging markets, these risks are heightened, and lower trading volumes may occur. Investments in smaller companies typically exhibit higher volatility.
Carefully consider the Funds' investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds' summary and full prospectuses, which may be obtained by calling 1-844-REX-1414. Read the prospectus carefully before investing.
Cryptocurrency Risk. By virtue of the Fund’s investment in stocks that derive revenue from cryptocurrency-related activities, shareholders may be exposed indirectly to the risks of cryptocurrencies. Cryptocurrencies are extremely new and nontraditional assets and a potential shareholder’s ability to evaluate the performance of cryptocurrencies be limited. Digital assets, represented on a decentralized public transaction ledger that is maintained by an open source protocol, are substantively different from traditional assets and investments. Because if the complex nature of cryptocurrency, an investor in the Fund may face numerous material risks that may not be present in other investments. Current IRS guidance indicates that digital assets such as cryptocurrencies should be treated and taxed as property, and that transactions involving the payment of cryptocurrency for goods and services should be treated as barter transactions. This treatment may create a potential tax reporting requirement in any circumstance where the ownership of a cryptocurrency passes from one person to another.
Blockchain Technology Risk. The stocks in which the Fund will invest will be subject to the risks associated with blockchain technology, which is a new and relatively untested technology. The risks associated with blockchain technology may not emerge until the technology is widely used. Blockchain systems could be vulnerable to fraud, particularly if a significant minority of participants colluded to defraud the rest. Access to a given blockchain requires an individualized key, which, if compromised, could result in loss due to theft, destruction or inaccessibility.
An investment in the Fund in is subject to risks including loss of principal. There can be no assurance the Fund will achieve it's investment objectives. The Fund can be more volatile than broad market averages. Additional risks for the Fund include: emerging markets risk, foreign securities risk, geographic risk, geopolitical risk, liquidity risk, non-diversification risk, technology risk, and valuation risk. For a complete description of these risk please read the prospectus carefully.