On March 11, 2019, asset management giant Invesco launched a blockchain ETF that will trade on the London Stock Exchange (LSE). The Invesco Elwood Global Blockchain ETF is the first publicly-traded blockchain ETF on a British stock exchange.
The Invesco Blockchain ETF
According to a report by the Financial Times, Atlanta-headquartered investment management company Invesco has launched the Invesco Elwood Global Blockchain UCITS ETF (BCHN:LN) with the intention to invest in companies that are involved in the cryptocurrency and blockchain industry.
Holdings of the new exchange-traded fund include CME Group, which offers Bitcoin futures, and Taiwan Semiconductor Manufacturing, which sells mining chips to cryptocurrency mining companies. AMD, Apple, and Intel are some of the blue-chip holdings in the fund while the likes of Hive Blockchain Technologies and Riot Blockchain constitute “pure play” blockchain stocks in the fund.
The Invesco Elwood Global Blockchain ETF will track the performance of the Elwood Blockchain Global Equity Index and charge 65 basis points per annum as a fund management fee.
Elwood Asset Management CEO, Bin Ren, believes that use cases for blockchain technology go beyond digital currencies. He said:
“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.”
Gary Buxton, Invesco’s Head of EMEA ETFs, commented, “Invesco has earned a reputation for being able to identify genuine opportunities with sound investment potential, and finding the most suitable ways to bring them to market. We believe the potential for blockchain technology to disrupt the status quo of companies in virtually every industry makes for a strong long-term investment case. This new fund offers exposure with the added benefit of Elwood’s expertise along with the attractions of our ETF structure.”
Chris Mellor, Invesco’s Head of EMEA ETF Equity Product Management, added:
“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 Growing Blockchain ETF Market
As the first blockchain ETF on the London Stock Exchange, the Invesco Blockchain ETF marks a milestone for the blockchain industry.
To date, around half a dozen blockchain ETFs have been listed on sold on stock exchanges in the U.S. and Canada. Now, investors in the UK will also have easy access to blockchain exposure for their investment portfolios. It will be interesting to see how investors in the UK will respond to the investment opportunity provided by Invesco’s new blockchain ETF.
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