NEW YORK, Jan. 30, 2018 /PRNewswire/ -- Innovation Shares LLC, a sponsor of unique thematic Exchange Traded Funds, is today announcing the launch of the Innovation Shares NextGen Protocol ETF (NYSE Arca: KOIN), the first exchange-traded fund to use artificial intelligence to identify and invest in blockchain innovators and adopters.
KOIN tracks an index designed to give investors exposure to global stocks that are participating in the growth of blockchain technology, which is being applied across a number of industries. KOIN's underlying index places stocks in one of four categories based on how they relate to the theme: 1. Cryptocurrency as payment; 2. Mining enablers; 3. Solutions providers; and 4. Adopters.*
The index underlying KOIN was constructed utilizing a natural language processing algorithm that screens for global stocks that are believed to have a current or future economic interest in blockchain technology. By harnessing the power of textual analysis and artificial intelligence, companies are uncovered that might otherwise be overlooked by traditional analytical research.
"Blockchain is a highly innovative technology, and we're applying an innovative approach to identifying the stocks leveraged to the theme," said Matt Markiewicz, Managing Director with Innovation Shares. "Our proprietary patent-pending AI based process allows us to better capture a full range of publicly traded companies that are developing, investing in and utilizing this new protocol."
Markiewicz noted that blockchain technology has applications that can potentially benefit multiple industries and new use cases are continually being discovered. "We believe we've built a solution that allows investors to gain access to a profound digital resource, one which has the potential to revolutionize the way global trade is conducted, data is secured, supply chains are managed, financial instruments are cleared and contracts are recorded," Markiewicz said.
The four categories that make up KOIN's underlying index are defined as follows:
- Cryptocurrency as Payment: Companies that accept cryptocurrency as payment for goods and services or are developing blockchain payment solutions.
- Mining Enablers: Companies that either create equipment and/or tools to enable creation of new blockchains or are mining blockchains as their main business.
- Solutions Providers: Companies engaged as Blockchain as Service providers. They assist businesses and organizations in the creation and implementation of blockchain applications.
- Adopters: Companies that primarily use blockchain technology to increase operational efficiencies, optimize settlement processes, enhance the customer experience and/or increase data security/integrity.
Exchange Traded Concepts will serve as the advisor for KOIN.
About Innovation Shares LLC
Innovation Shares focuses on themes that investors are talking about but have a hard time accessing. The innovation behind the firm's name is not just the exposures it offers; rather, it resides in the patent-pending process used to develop proprietary indices. Using AI driven natural language processing to power a sentiment-based selection methodology, Innovation Shares identifies stocks that might otherwise evade a traditional analytical approach.
About Exchange Traded Concepts
Exchange Traded Concepts (ETC) is an exchange-traded fund (ETF) provider that creates white label ETFs for index providers and asset managers around the world through a complete turnkey solution. ETC's ETF-In-A-Box™ Solution provides an efficient and cost-effective method to bring exchange-traded funds to market with the operational and regulatory experience necessary to manage the complexities of launching and managing an ETF.
Carefully consider the Fund's investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Fund's prospectus, which may be obtained by visiting innovationshares.com. Investors should read it carefully before investing or sending money.
Investing involves risk, including possible loss of principal. International investments may also involve risk from unfavorable fluctuations in currency values, differences in generally accepted accounting principles, and from economic or political instability. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. Narrowly focused investments and investments in smaller companies typically exhibit higher volatility. There is no guarantee the fund will achieve its stated objective.
Currently, there are few public companies for which Blockchain technology represents an attributable and significant revenue stream. The Fund may be more susceptible to potential operational risks through breaches in cyber security. Investments in blockchain companies are subject to: theft, loss, or destruction; competing platforms and technologies; developmental risk; cybersecurity risk; intellectual property claims; lack of regulation or liquid markets, and possible manipulation of blockchain-based assets; and third party product defects or vulnerabilities.
ETF Shares are bought and sold at market price, not net asset value (NAV), and are not individually redeemed from the Fund.
Exchange Traded Concepts, LLC serves as the investment advisor, and Penserra Capital Management LLC serves as the sub-advisor to the fund. The Funds are distributed by SEI Investments Distribution Co. (1 Freedom Valley Drive, Oaks, PA, 19456), which is not affiliated with Exchange Traded Concepts, LLC or any of its affiliates.
SOURCE Innovation Shares LLC