Listed Funds Trust - Horizon Kinetics Blockchain Development ETF (BCDF)

Overview

The Listed Funds Trust - Horizon Kinetics Blockchain Development ETF (BKCH) is an actively managed exchange-traded fund focused on companies involved in the development and utilization of blockchain technology. It aims to invest in a diversified portfolio of domestic and foreign equity securities of companies engaged in blockchain-related activities, including but not limited to, cryptocurrency mining, blockchain technology infrastructure, and blockchain application development.

Reputation and Reliability

ETF Listed Funds Trust is a relatively newer player in the ETF market, sponsored by American Beacon Advisors, Inc. While the ETF sponsor may not have the long-standing reputation of some of the largest ETF issuers, it operates under the umbrella of a well-established financial services firm. The reliability will largely depend on the underlying management firm and their execution.

Management Expertise

The ETF is managed by Horizon Kinetics LLC, a registered investment advisor known for its active management approach and focus on thematic investments. Horizon Kinetics has a track record of identifying emerging trends and constructing portfolios around them, suggesting a dedicated management team with expertise in the blockchain space.

Goal

The primary investment goal of the ETF Listed Funds Trust - Horizon Kinetics Blockchain Development ETF is to seek long-term capital appreciation by investing in companies that are expected to benefit from the development and widespread adoption of blockchain technology.

Investment Approach and Strategy

Strategy: The ETF does not aim to track a specific index. It is an actively managed fund, meaning the portfolio managers have discretion in selecting and weighting securities based on their research and outlook on the blockchain sector.

Composition The ETF's composition primarily consists of equity securities (stocks) of companies involved in various aspects of blockchain technology. This can include companies directly involved in cryptocurrency mining, hardware providers, software developers, and companies integrating blockchain into their existing business models.

Market Share: As an actively managed thematic ETF, BKCH is a niche product. Its market share within the broader blockchain ETF landscape is likely to be modest compared to passively managed or broader technology ETFs.

Total Net Assets (AUM): As of recent data, the Total Net Assets (AUM) for BKCH are approximately $300-$400 million. (Note: This figure can fluctuate. Specific current data should be verified from a live financial data source.)

Key Competitors

• Innovation Shares NextGen Blockchain ETF (BKCH)
• Amplify Transformational Data Sharing ETF (DTAS)
• Vaneck Digital Transformation ETF (DAPP)

Competitive Landscape

The blockchain ETF market is relatively specialized and competitive. BKCH competes with other thematic ETFs focusing on blockchain and digital transformation. Its advantage lies in its active management approach, potentially allowing for greater flexibility and alpha generation compared to passive ETFs. A potential disadvantage could be higher expense ratios and manager risk associated with active management.

Historical Performance: Historical performance data for BKCH shows significant volatility, aligning with the inherent risks of the blockchain sector. Performance over the past year has been mixed, with periods of strong gains and sharp declines. Specific year-to-date, 1-year, 3-year, and 5-year performance figures would require up-to-date financial data.

Benchmark Comparison: As an actively managed fund, BKCH does not track a specific benchmark index. Its performance is best evaluated against its stated investment objective and the returns of comparable blockchain-focused ETFs. It may outperform or underperform competitors based on the manager's stock selection.

Expense Ratio: The expense ratio for BKCH is approximately 0.90%. This is on the higher side, typical for actively managed thematic ETFs, and includes management fees and other operating expenses.

Average Trading Volume

The average trading volume for BKCH is generally moderate, which can impact the ease and cost of executing large trades.

Bid-Ask Spread

The bid-ask spread for BKCH can vary but is typically within a reasonable range for an actively managed thematic ETF, though it may be wider than highly liquid broad market ETFs.

Market Environment Factors

The ETF is heavily influenced by the cryptocurrency market's volatility, regulatory developments, technological advancements in blockchain, and broader investor sentiment towards disruptive technologies. Economic conditions affecting risk appetite also play a significant role.

Growth Trajectory

The growth trajectory of BKCH is tied to the broader adoption and maturation of blockchain technology. As more companies integrate blockchain solutions and regulations become clearer, the sector could experience sustained growth, positively impacting the ETF's holdings and strategy.

Competitive Edge

BKCH's competitive edge stems from its active management strategy, allowing Horizon Kinetics to dynamically adjust its holdings based on evolving blockchain trends and opportunities. The fund focuses on companies that are actively developing or applying blockchain, potentially capturing growth before it becomes widely recognized. Its concentrated, high-conviction approach aims to deliver superior returns by leveraging deep sector expertise and timely investment decisions.

Volatility

BKCH exhibits high historical volatility, reflecting the speculative nature of the blockchain industry. Fluctuations in cryptocurrency prices, regulatory uncertainty, and rapid technological changes contribute to significant price swings.

Market Risk

The primary market risks for BKCH include regulatory risk (potential government intervention affecting blockchain companies), technological obsolescence (new innovations making existing solutions irrelevant), and the inherent volatility of the cryptocurrency market if holdings are directly or indirectly exposed.

Ideal Investor Profile

The ideal investor for BKCH is an aggressive growth-oriented investor with a high-risk tolerance and a long-term investment horizon. Investors should have a strong conviction in the future of blockchain technology and be comfortable with significant portfolio fluctuations.

Market Risk

BKCH is best suited for long-term investors seeking exposure to the high-growth potential of the blockchain sector. It is not typically recommended for conservative investors or those looking for stable, predictable returns due to its inherent volatility.

The Listed Funds Trust - Horizon Kinetics Blockchain Development ETF (BKCH) is an actively managed fund targeting companies at the forefront of blockchain innovation. Managed by Horizon Kinetics, it offers a concentrated portfolio aiming for long-term capital appreciation. While its active approach provides potential for outperformance, it also comes with higher volatility and expense ratios, making it suitable for aggressive, long-term investors with a high-risk tolerance. The ETF's performance is intricately linked to the dynamic and evolving blockchain ecosystem.

Data Sources:

• ETF Issuer Website (ETF Listed Funds Trust / Horizon Kinetics)
• Financial Data Aggregators (e.g., Morningstar, Yahoo Finance, Bloomberg - specific data points require live access)
• Industry Analyst Reports

Disclaimers:

This information is for general guidance only and does not constitute financial advice. ETF data, including AUM, performance, and expense ratios, can change rapidly. Investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions. Market share data is illustrative and based on general market understanding, not precise real-time figures.