Invesco, an independent firm active into investment management based in Atlanta, has introduced ETF (Exchange Traded Fund) blockchain that trades on London Stock Exchange. The firm had reported 926 billion dollars under the management as on November last year. The international blockchain was created in association with Elwood Asset Management which is a digital asset entity based in the United Kingdom.
What’s interesting is the ETF would provide the investors with enough exposure to entities that make profits directly through BTC and crypto-based activities.
Initially, ETF would be utilized for investments only in those 48 organizations which the Elwood Blockchain Global Equity Index has included in its list. Some of the listed companies include the following:
- Taiwan Semiconductor Manufacturing, a manufacturer of cryptocurrency mining chip
- CME Group and Cboe that introduced BTC futures trading back in December of 2017
- Square, a payment processing entity which had registered sales of 166 million dollars in Bitcoin last year via its digital currency friendly application Cash App
- Samsung that is supposedly integrating Ethereum support through cryptocurrency wallet in the company’s upcoming model of Galaxy S10
- SBI Holdings, the Ripple partner who is also operating the new cryptocurrency exchange called VC Trade
- Overstock, tZero operator, a crypto and Bitcoin trading system based on blockchain
Other prominent technology companies include Apple, Amazon, Microsoft, Rakuten, and Intel.
Elwood CEO Bin Ren states,
“Blockchain has been around for a decade, but many people still see it just as the technology behind cryptocurrencies. 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 announcement further said,
“The ETF aims to deliver the performance of the Elwood Blockchain Global Equity Index by physically investing in the index constituents. The index offers exposure to global companies in developed and emerging markets that participate or have the potential to participate in the blockchain ecosystem. It is designed to evolve with the potential growth of blockchain technology.”
When it comes to largest sector-wise allocation, the index at present has 46% in IT sector, 23% in the Finance sector, 9% in the sector of communication services, and 8% in the sector of consumer discretionary and materials.
The announcement also declared that the top 3 biggest allocations, in terms of geographical area, are done to the United States, Japan, and Taiwan with 39%, 29%, and 12%, respectively. Solactive AG calculates the index for Elwood Asset Management. Solactive AG that has its expertise in custom indices is a renowned index provider across the world. The index gets a rebalance and review every quarter.
The new global blockchain started trading on 11th March after being listed on 8th March.