Blockchain ETF

How do you invest in the blockchain phenomena (i.e. the web being so secure that it can trust emails to act like financial payments)? Could blockchain exchange-traded funds (that’s a mouthful, so we'll call them ETFs) be the next big thing?

Just like the frenzy when the Internet and dot coms first came to market, ETFs that invest exclusively in blockchain-based technology companies are becoming increasingly popular. In fact, the Securities and Exchange Commission (SEC) has asked potential blockchain ETFs to take the word 'blockchain' out of their fund’s name to avoid the investor mania that's starting to occur. Companies originally called Riot Blockchain and Long Blockchain saw their stock price double in 24 hours. Woot.

But let’s step back for a minute to explain what the heck a blockchain is. Invented by Satoshi Nakamoto in 2008, a blockchain keeps records of transactions that are occurring by the second in the world of cryptocurrencies. With a goal to prevent hackers from double spending their bitcoin and other currencies, a blockchain is like a general ledger that is managed by a “peer-to-peer” network rather than a central authority. And just like a mutual fund operates, Blockchain ETFs pool investments in groups of stocks that trade with up and down price changes.

So is it time to get on the bandwagon early and invest in blockchain technology companies through ETFs, or will this be just another fad that will quickly fade away and collapse? Only time will tell. Hopefully we'll still be wearing our vinyl jumpsuits and bellbottoms when we find out the answer.