Horizon Kinetics Blockchain Development ETF (BCDF US) – Portfolio Construction Methodology

The investment process governing the actively managed Horizon Kinetics Blockchain Development ETF steers capital to listed equity issuers positioned to benefit—directly or indirectly—from the use of blockchain in issuance, facilitation, custody, trading, or administration of digital assets. The portfolio draws from global developed markets and ADRs, emphasizing business models with operating leverage to digital-asset infrastructure rather than direct token exposure. Eligibility focuses on exchange-listed common stocks; the fund observes 1940 Act limits on illiquid holdings (≤15%) and is non-diversified, allowing position concentration subject to issuer and liquidity risk controls. Security selection is discretionary, using bottom-up research on economics of transaction venues, networks, and service providers. Portfolio construction targets high-conviction weights with attention to sector and country aggregation. The team rebalances opportunistically, trimming or exiting when fundamentals or regulatory/operational risks impair the thesis or when exposures exceed internal guardrails.

To explore BCDF in more depth, visit our ETF analytics platform for institutional-grade insights — including performance and risk metrics, correlations, sensitivities, and factor exposure: https://www.etfstrategy.com/etf/BCDF_US