Investment management firm Invesco has launched a blockchain exchange-traded fund (ETF) at the London Stock Exchange.
Dubbed as Invesco Elwood Global Blockchain UCITS ETF, the fund was developed by the US-based company along with Elwood Asset Management, an investment firm specializing in providing institutional investors with exposure to digital assets and blockchain technology.
“Invesco has earned a reputation for being able to identify genuine opportunities with sound investment potential, and finding the most suitable ways to bring them to market,” Gary Buxton, head of EMEA ETFs at Invesco, said, mentioning the launch of the ETF.
“We believe the potential for blockchain technology to disrupt the status quo of companies in virtually every industry makes for a strong long-term investment case. This new fund offers exposure with the added benefit of Elwood’s expertise along with the attractions of our ETF structure.”
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Initially, the fund will target 48 companies involved in blockchain development including Apple, Intel, Advanced Micro Devices, Taiwan Semiconductor Devices, and CME Group, which, according to the company, were selected through a proprietary scoring system developed by Elwood.
“Blockchain has been around for a decade, but many people still see it just as the technology behind cryptocurrencies,” Bin Ren, CEO of Elwood, explained. “The true potential, however, may extend far beyond that. We are beginning to see the technology being used by financial services companies in particular, but we expect the greater application of blockchain technology across a wide range of industries. We believe the potential for blockchain to change the global economy is greatly underappreciated in today’s market, much like the internet was in the beginning, when most people couldn’t see past its usefulness for email.”
The index has currently listed 46 percent of companies from the information technology sector, 23 percent from financials, while the US and Japan dominate on a geographical basis with 39 percent and 29 percent respectively.
Crypto ETF – the Next Big Financial Product
Last week, SIX Swiss Exchange listed an Ethereum-backed exchange-traded product (ETP) after the success of two similar products on the exchange – a Bitcoin-backed ETP and a crypto basket index product.
Meanwhile, in the United States, companies are struggling to get approval from the Securities and Exchange Commission (SEC) to introduce a Bitcoin-backed ETF. Currently, two applications – one by the Chicago Board Options Exchange and other by NYSE Arca – are under the review process by the agency.