On Monday, March 11, Elwood, a London based firm specialized in digital assets, announced that it has partnered with Invesco — another asset management company — to launch a blockchain exchange-traded fund (ETF) on the London stock exchange.
The new ETF product is dubbed “Invesco Elwood Global Blockchain UCITS ETF” and is expected to go live later today.
In the announcement, Elwood revealed that the ETF initiative targets companies who have the potential to build “real earnings” from blockchain technology.
German provider of financial indices, Solactive AG, subsequently mentioned that Elwood has a portfolio of 48 companies at this time including Bitcoin futures trading operators CME Group, Signature Bank, Square, and cryptocurrency chipmaker, Taiwan Semiconductor manufacturing company (TSMC), amongst others.
Sharing his thoughts on the new blockchain-focused ETF product, the head of EMEA (Europe, the Middle East, and Africa) ETF equity product management at Invesco Chris Mellor 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 new ETF will require a fee of 0.65% as an annual management fee which is aimed at delivering the performance of the Elwood Blockchain Global Equity Index by “physically investing in the Index constituent.”
Blockchain ETF Allocation
Presently, the index sector allocation is as follows:
- 46% goes to information technology
- 23% goes to financial technology
- 9% to communication services
- 8% to materials and consumers discretionary sector,
The largest geographical allocations go to the U.S.(43%) Japan (29%) and Taiwan (12%) respectively.
Undoubtedly, the new blockchain ETF by Elwood is not the only effort currently on the table to attract mainstream and institutional investors into the crypto space. We reported last month that two U.S Public Pension Funds invested in a Blockchain Fund managed by Morgan Creek Digital.
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