At a time when the United States is hesitating to approve any crypto-backed exchange-traded funds (ETFs), China is paving the way for its first ETF backed by blockchain-related stocks.
Reported by the Shanghai Securities News, an application for the investment instrument was filed by the Shenzhen-based asset management firm Penghua Fund and was accepted by the China Securities Regulatory Commission (CSRC) last Tuesday.
Dubbed Penghua Shenzhen Stocks Blockchain ETF, the ETF will track the performance of Shenzhen-listed companies which have a business in the blockchain industry.
If approved, it will become China’s first thematic blockchain investment instrument available publically.
Notably, the application was submitted the same day the Shenzhen Stock Exchange (SZSE) has released a new index tracking the performance of 50 companies working in the blockchain sector.
The Shenzhen Stock Exchange in China has launched a new index that tracks the top 50 public companies working on Blockchain
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Initiatives like these pave the way for mass awareness of Blockchain Crypto
When India? 🙏
— Nischal (WazirX) ⚡️ (@NischalShetty) December 28, 2019
Xi’s fierce speech praising blockchain
The adaptation of blockchain technology by China’s mainstream players gained steam after the speech by Chinese President Xi Jinping, in which he boosted the nascent technology and urged the country to capitalize on it.
The speech, however, also encouraged many entities to spread their crypto trading business in China, which was earlier banned by the government. In a situation like this, the authorities had to come out and clear the difference between blockchain and crypto.
Meanwhile, in the United States, the Securities and Commission Exchange (SEC) is still hostile towards Bitcoin-backed ETF. The regulator has delayed its decision for years and also rejected multiple applications citing various reasons. However, the major players in the country, including the Winklevoss twins and Bitwise, are still pushing for the approval of a Bitcoin ETF.