As per a report published by Bloomberg on 20th June 2018, the Toronto Stock Exchange (TSX), this Thursday onwards, will be enlisting a new Blockchain Exchange Traded Fund (ETF), The Horizons Blockchain Technology and Hardware Index ETF fund. This will in addition to the existing ETFs from Harvest Portfolio Group Inc. and Evolve Funds Group Inc.
For the uninitiated, an ETF tracks a commodity, index, basket of assets represented proportionally in the fund’s shares, and is marketable security. Due to the fact that ETF’s are sold and purchased on a stock exchange, they experience price variations throughout the day. The holdings of the new ETF being added to the TSX comprises of corporations involved in the development of blockchain related applications such as Nvidia Corp, Hive Blockchain Technologies Ltd., and Digital Realty Trust Inc.
The new ETF from Horizons, based on the Hardware Index and Solactive Blockchain Technology, would be traded under the symbol BKCH and will be focussing on hardware and services. As per Steve Hawkins in an interview to Bloomberg, Co-CEO Horizons ETFs Management Canada Inc., “We don’t know which individual Blockchain companies are going to work, we have no idea what the extent of the Blockchain applications will be, but we do know people will have to invest in the infrastructure to build out Blockchain. It’s going to be these ancillary services to the Blockchain technology where the winners are going to be at the end of the day.” He further added that due to high-risk factor the fund is not keen to invest in companies with market cap of $20mln and was quoted as saying that “Investors need to be investing in the well-established global infrastructure to the Blockchain, not necessarily taking risks on the start-up Blockchain development companies.”
Initiated by Harvest Portfolios, the first ever Blockchain based ETF in Canada received approval in the month of February with the focus being on small-scale and large-scale Blockchain operations. As per a report published in Bloomberg, the Blockchain Technologies ETF from Harvest Portfolios has witnessed a decline of 25% since its launch and suffered a drop of 17% from the issue price of C$10.