Investment management company, Invesco has launched a blockchain exchange-traded fund (ETF) on the London Stock Exchange.
Announced on Monday, the blockchain product called the “Invesco Elwood Global Blockchain UCITS ETF” was launched in partnership with London’s Elwood Asset Management firm which specializes in providing institutional investors with exposure to digital assets and blockchain technology.,
According to the publication, Invesco says the ETF is targeted at companies with potential to generate ‘real earnings’ from blockchain technology, as it will initially be targeting 48 companies involved with the tech. These companies include Apple, chip manufacturer Intel, Bitcoin futures CME Group, AMD, Japanese Exchange Monex, retail giant Overstock, Signature Bank, Square among others.
Speaking on the blockchain ETF product, Head of ETF equity management at Invesco, Chris Mellor said:
The potential of 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 carries an annual management fee of 0.65 percent and aims to deliver the performance of the Elwood Blockchain Global Equity Index by physically investing in the index constituents.” he continued
According to Elwood CEO Bin Ren, he says:
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.
Cryptocurrencies (BTC, ETH, XRP) and blockchain ETFs are becoming common place across stock exchanges just as more firms wait on the U.S SEC to determine the stance on their ETF proposals…Will these moves propel faster involvement of more institutional investors in the industry? Share your thoughts in the comments