Today, March 11, the London Stock Exchange (LSE) is well set to start trading a blockchain ETF. The exchange-traded fund (ETF) will be introduced by Invesco, an asset management company with over 800 billion U.S dollars in assets.
During the launch, the blockchain ETF will comprise of more than forty companies including CME Group, Taiwan Semiconductor Manufacturing, AMD, Intel, Apple, and other companies focused on, blockchain and other emerging technologies.
As reported by Zerohedge:
The Invesco Global Blockchain ETF will start trading on the London Stock Exchange on Monday (March 11). The ETF will invest in companies such as Taiwan Semiconductor Manufacturing, which supplies cryptocurrency manufacturers with mining chips, and CME Group, the US exchange operator that has pioneered Bitcoin futures trading. Other constituents of the ETF, which carries a 65 basis points management fee, include Apple, Intel, and Advanced Micro Devices.
The head of ETF equity at Invesco, Chris Mellor, said that the blockchain ETF will include companies that have been scored using an Elwood Asset management-developed system.
Elwood’s CEO, Bin Ren, acknowledged that the distributed ledger technology is not only constrained to cryptocurrencies. For Ren, the distributed ledger technology is finding its way into the traditional finance sector among other industries.
Ren added that:
The potential for blockchain to boost earnings was often not reflected in the share prices of companies.
Although Invesco’s blockchain ETF is not the first, previous blockchain ETF’s have not gained much traction.
As a Bitcoin ETF awaits approval from regulators, especially in the United States, a blockchain ETF seems like the next best thing for now.
In the recent past, despite the fall in prices of cryptocurrencies, investors are showing faith in crypto-focused firms. This has been manifested in the amounts these investors have been pouring into crypto/blockchain firms during seed funding rounds.
Do you think Invesco’s blockchain ETF will attract a huge amount of capital compared to previous blockchain ETF’s?
Let us know your thoughts in the comments section below.