Is a Blockchain-Based Stock Exchange on the Horizon?

The introduction of a bitcoin futures ETF in the U.S. was a big step forward, and now a blockchain-based stock exchange could add even more legitimacy for digital assets on Wall Street.

The Boston Security Token Exchange is looking to do just that by utilizing blockchain technology to create an exchange that can help bring IPOs to the market. In addition, it hopes to help make the price discovery and settlement process more efficient on the support side.

"This week, America’s first blockchain-based stock exchange obtained regulatory approval from the Securities and Exchange," an Engadget article notes. "In a filing the SEC uploaded to its website on late Thursday evening, it said the Boston Security Token Exchange (BSTX) could use the nascent technology to offer faster trade settlements."

"Compared to a traditional exchange where it typically takes two days to settle a trade, BSTX will offer same-day and next-day settlements," the article adds further. "It will also use a private blockchain to offer a market feed that will allow members to see their own trades, as well as that of others, on an anonymous basis."

3 ETF Options to Capitalize on Innovation

With the use cases for blockchain expanding, ETF investors have options to consider. First up, there's the Amplify Transformational Data Sharing ETF (BLOK).

BLOK is actively managed and invests in companies directly involved in developing and using blockchain technology. BLOK was also the first blockchain ETF approved by the SEC and launched in 2018.

Another option is the Siren ETF Trust Siren Nasdaq NexGen Economy ETF (BCLN). BLCN seeks long-term growth by tracking the investment returns of the Siren Nasdaq Blockchain Economy Index, which is designed to measure the returns of companies that are committing material resources to developing, researching, supporting, innovating, or utilizing blockchain technology for their proprietary use or for use by other blockchain-focused companies.

Lastly, investors can take a look at the First Trust Indxx Innovative Transaction & Process ETF (LEGR), which seeks investment results that correspond generally to the price and yield (before the fund's fees and expenses) of the Indxx Blockchain Index. The index is designed to track the performance of companies that are either actively using, investing in, developing, or have products that are poised to benefit from blockchain technology and/or the potential for increased efficiency provided to various business processes.

For more news, information, and strategy, visit the Crypto Channel.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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