Investment management firm Invesco has launched a blockchain exchange-traded fund (ETF) on the London Stock Exchange last week. Invesco has partnered with Elwood Asset Management for the same. Elwood Asset Management is a London based investment firm which is specialized in digital assets. This partnership will be launching the product which has been named as “Invesco Elwood Global Blockchain UCITS ETF.”
Elwood announced the news last week by saying that the ETF has been designed to target companies and firms with keeping in mind the potential to generate big real earnings by the proper use of the blockchain technology.
Chris Mellor, the head of EMEA (Europe, the Middle East and Africa) ETF equity product management at Invesco, said,
“The potential for blockchain to drive real earnings is huge, but it is often hidden within companies involved in other areas. This ETF offers investors access to companies with real earnings now, but with the added potential of blockchain-related earnings not reflected in their share prices.”
The ETF holds an annual management fee of nearly 0.65 per cent and its basic and most important aim is to deliver the best performance of the Elwood Blockchain Global Equity Index through “physically investing in the index constituents,” Elwood said in his statement.
The index which has been calculated by the provider of financial indices Solactive AG, from Germany for Elwood currently has a portfolio which consists of 48 firms. These 48 big firms include the cryptocurrency chip-maker Taiwan Semiconductor Manufacturing Company (TSMC), messaging app giant Kakao which has its base in South Korea, bitcoin futures trading operator CME Group, cryptocurrency exchange operator Monex Group which has its base in Japan, online retail giant Overstock, Signature Bank and Square.
The index’s sector allocations currently include information technology (46 per cent), financials (23 per cent), communication services (9 per cent), and in materials and consumer discretionary sectors (8 per cent), according to the announcement. The three largest geographical allocations go to the US which stands at 39 per cent, Japan (29 per cent) and Taiwan (12 per cent).
The CEO of Elwood, Bin Ren said,
“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.”