The Invesco Elwood Global Blockchain ETF will start trading on the London Stock Exchange on Monday. The investment management company, with over $800 billion in assets under management, will be launching the “world’s biggest blockchain-focused ETF”
According to ZeroHedge, the exchange-traded fund will include a portfolio of 48 different companies with exposure to blockchain technology; including Taiwan Semiconductor Manufacturing, which supplies cryptocurrency mining machine manufacturers with chips, and the CME Group, the first regulated US exchange to launch bitcoin futures. Other firms like Apple, Intel, and Advanced Micro Devices (AMD) will also be a par ETF and each will have a 65 basis points management fee.
These 48 portfolios will be chosen based on a proprietary scoring system developed by Elwood Asset Management, a specialist crypto investment boutique backed by Alan Howard, co-founder of the Brevan Howard hedge fund.
The CEO of Elwood, Bin Ren, said he believes that blockchain can be included in many other sectors beyond Cryptocurrency. “We are beginning to see the technology being used by financial services companies in particular, but we expect greater application of blockchain technology across a wide range of industries,” said Mr Ren.
Invesco’s head of ETF equity product management in Europe, Chris Mellor said, the potential for blockchain to boost earnings was often not reflected in the share prices of companies. He elaborated on Rio Tinto, the mining company that owns hydroelectric assets that could be harnessed for cryptocurrency mining.
Although some other blockchain-focused ETFs are already there on the market, few have attracted a relatively large amount of capital. According to ZeroHdge the largest one was Amplify Transformation Data Sharing ETF, has $110 million in assets.
Recently, investors have shown significant interest in Wall Street firms taking on cryptocurrencies and the nascent technology behind them. A group of 14 publicly listed companies with exposure to the crypto ecosystem compiled by Yahoo Finance, as covered, was outperforming the S&P 500 earlier this year.