Innovation Shares announced the launch of the first exchange traded fund using artificial intelligence to identify and invest in blockchain innovators and adopters, according to a company statement.
The index underlying the ETF, called KOIN, is constructed using a natural language processing algorithm that screens for global stocks that are believed to have a current or future economic interest in blockchain technology.
Global stocks in the index can fall in one of four categories; cryptocurrency as payment; mining enablers; solutions providers; and adopters.
Matt Markiewicz, managing director at Innovation Shares, said in a statement: “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.”
Innovation Shares said it’s using AI driven natural language processing to “power a sentiment-based selection methodology”, identifying stocks that might otherwise evade a traditional analytical approach.