Today, we have fantastic news to share with you when it comes to Blockchain ETFs. While we're all here awaiting a Bitcoin ETF, it appears as though Invesco, the company with over $800 billion assets under management, will launch an exchange-traded fund targeting companies with the potential to generate earnings from blockchain.
According to the Financial Times, the Invesco Elwood Global Blockchain ETF will start trading on the London Stock Exchange on Monday.
The ETF will include upon launch a portfolio of 48 different companies that leverage blockchain technology, based on a proprietary scoring system developed by Elwood Asset Management. These include Taiwan Semiconductor Manufacturing which supplies cryptocurrency manufacturers with mining chips, and the CME Group, a US exchange operator that has undergone Bitcoin futures trading. Other constituents of the ETF, which have a 65 basis points management fee include Apple, Intel, and Advanced Micro Devices.
While cryptocurrencies and blockchain technology are often seen in the same light, it's very important to be able to distinguish the two. A lot of cryptocurrencies exist on a blockchain network, but as Bin Ren, the Elwood chief Executive mentioned, the possible applications for blockchain extend far beyond cryptocurrencies. "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."
I believe that a big and successful blockchain ETF can help pave the pathway for blockchain technology and even cryptocurrencies. Not only is Invesco fostering further investment into selected blockchain companies, but the Blockchain ETF provides greater credibility and development for the space. I know most of us are wondering when the Bitcoin ETF will be approved but here's hoping that similar technologies like the blockchain ETF, can shed further development in the blockchain and cryptocurrency sector.
When it comes to blockchain-based ETFs, seven blockchain-based ETFs have launched in the US in the past, but they have only attracted very limited investors inflows. The largest out of the seven blockchain-based ETFs, the Amplify Transformational Data Sharing ETF, has $110 million in assets. Last year in February 2017, First Trust, the US asset manager, launched the first European-listed blockchain ETF on the Italian Stock Exchange. The Innovative Transactions and Process ETF does not carry very many assets, just over $20m in assets.
When it comes to blockchain ETFs, while many did come to the market last year, a large majority was overlooked as the prices for cryptocurrencies like Bitcoin plunged and fell. Since blockchain ETFs are niche funds, they are subject to a lot of influences in similar or related industries. Here's hoping that the Invesco Elwood Global Blockchain ETF will kick off well this year and pave a new way for another blockchain ETFs and perhaps even the Bitcoin ETF.
What are your thoughts on this situation guys?
Do you think that Invesco's blockchain ETF will perform well?
Or do you think that it will end up flopping like the other blockchain ETFs?
Let me know what you think in the comments below.
It's Cindy with CryptoPig, Catch you guys around!