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Atlanta-based Independent investment management firm Invesco, with $926 billion under management as of November 2018, has launched a blockchain exchange-traded fund (ETF) on the London Stock Exchange. The Invesco Elwood Global Blockchain UCITS ETF was developed in partnership with UK-based digital asset company Elwood Asset Management.
The ETF will give investors exposure to companies that generate profits directly from Bitcoin and crypto-related activities.
The ETF will initially be used for investments in 48 companies listed on the Elwood Blockchain Global Equity Index.
The basket of companies includes Taiwan Semiconductor Manufacturing, a crypto mining chip manufacturer; CME Group and Cboe, which launched Bitcoin futures trading in December 2017; payment processing company Square, which reported $166 million in Bitcoin sales in 2018 through its crypto-friendly Cash App; Samsung, which is reportedly integrating a crypto wallet in its new Galaxy S10 model to support Ethereum; Ripple partner SBI Holdings, operator of new crypto exchange VC Trade; and Overstock, operator of tZero, a blockchain-based Bitcoin and crypto trading system.
Other big tech companies include Amazon, Apple, Intel, Microsoft and Rakuten.
Says Bin Ren, CEO of Elwood,
“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 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.”
According to the announcement,
“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.”
Index’s largest sectors
- 46% in information technology
- 23% in financials
- 9% in communication services
- 8% in materials and consumer discretionary sectors
According to the announcement,
“The three largest geographical allocations are to the US (39%), Japan (29%) and Taiwan (12%).”
“The index is calculated for Elwood Asset Management by Solactive AG, a globally recognized index provider with expertise in tailor-made indices. The index is reviewed and rebalanced quarterly.”
The Invesco Elwood Global Blockchain UCITS ETF was listed on the London Stock exchange on Friday, March 8 and began trading on Monday.
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