Independent investment management firm Invesco is launching a blockchain exchange-traded fund (ETF) on the London Stock Exchange.
Headquartered in Atlanta, Georgia, Invesco manages separate client-focused equity and fixed income portfolios. The firm creates equity, fixed income, commodity, multi-asset, and balanced mutual funds for its clients. It also invests in alternative markets, such as commodities and currencies.
The firm’s new ETF, called Invesco Elwood Global Blockchain UCITS ETF, was developed in partnership with Elwood Asset Management, an investment firm specializing in providing institutional investors with exposure to digital assets and blockchain technology.
“The potential for blockchain to drive real earnings is huge, but it is often hidden within companies involved in other areas,” said Chris Mellor, Head of EMEA ETF Equity Product Management at Invesco. “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 aims to deliver the performance of the Elwood Blockchain Global Equity Index, which is calculated for Elwood Asset Management by Solactive AG, 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.
“The majority of the index is currently allocated to companies where the value attributable specifically to blockchain technology is either in the ‘developing’ or ‘potential’ phase,” said Kevin Beardsley, Head of Business Development at Elwood. “These are companies with assets that are well-positioned to capitalize on the emerging opportunities for blockchain. Over time, however, we would expect the balance to shift naturally to companies with more significant direct exposure to blockchain-related earnings as the technology becomes more ubiquitous.”
Invesco claims that the ETF is the latest example of Invesco’s expertise in identifying new and interesting segments of the market and creating funds that enable investors to access those opportunities efficiently.
“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,” said Bin Ren, CEO of Elwood. “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.”
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