AdvisorShares Launches Blockchain and Cloud Computing ETF

Investment management company AdvisorShares announced on Thursday that it is launching a new exchange-traded fund (ETF) that will include cloud, digital ledger, and blockchain technologies.

The AdvisorShares Sabretooth ETF will begin trading on Friday of this week.

Like many other ETFs, the new financial instrument is going to be actively managed. That means the analysts in control of the fund will be using a specific Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term strategy to regularly the weighting of specific assets within the ETF.

As the name suggests, the company is going to be launched in conjunction with an investment advisory company - Sabretooth advisors.

Neither the statement released by AdvisorShares on Thursday nor the company's own website, indicate what mix of Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term and cloud technology firms will be included in the ETF.

But the company did provide an answer as to why it thinks companies that develop or use those technologies are worthy of an ETF.

AdvisorShares: positive future for blockchain technology

The investment manager said that it sees a positive, long-term future for the two technologies and that it expects any investment in them to pay off in the years ahead.

"The investment thesis for [the ETF] holds that companies utilizing cloud computing and digital companies implementing emerging technology like blockchain can realize increased profitability and appreciation in stock prices over an extended time horizon," said a company statement. "[AdvisorShares] believes these areas represent the future of technological record-keeping and information exchanging which can deliver a durable investment theme for growth equity opportunities and long-term performance."

Cryptocurrency fans, who may be excited to hear about the emergence of anything connecting blockchain to ETFs, will be disappointed to know that AdvisorShares will not be investing in any cryptocurrency.

In a presentation issued for prospective investors in the ETF, the firm said very clearly that the fund "does not invest in cryptocurrency."