US-based investment management company Invesco has just launched a blockchain ETF in the London Stock Exchange. According to Financial Times, the Invesco Elwood Global Blockchain UCITS ETF will target companies that have the potential to show ‘real earnings’ based on blockchain technology. This ETF is a good way for investors to gain access to companies with real earnings now, but with the added potential of blockchain-related earnings reflecting in their share prices in the future.
The ETF aims to deliver the performance of the Elwood Blockchain Global Equity Index which currently has 48 companies in its portfolio including big names like Intel, Apple, Taiwan Semiconductor Manufacturing Company (TSMC), bitcoin futures trading operator CME Group and Signature Bank, among others. The sector allocation includes information technology (46%), finance (23%), communication services (9%), along with materials and consumer discretionary sectors (8% each). In terms of geographical allocations, US, Japan, and Taiwan had the major share with 39%, 29%, and 12% share respectively.
It is good to see established financial institutions entering the blockchain industry with mature products. Once retail consumers see the value behind such investments, we do expect it to have a positive impact on the overall cryptocurrency market as well. We also hope that the Indian government can fast track regulations so that Indian financial companies can also enter the fray.