As it has been revealed, United States-based asset management company Invesco has launched a blockchain exchange-traded fund (ETF) on the London Stock Exchange (LSEG). It happened on March 11. The first publicly-traded blockchain ETF on a British stock exchange has been named the Invesco Elwood Global Blockchain ETF.
First Blockchain ETF on the London Stock Exchange
The main aim of the introduction of this ETF is to provide a new opportunity for companies that are involved in the cryptocurrency and blockchain industry to attract investors’ money. It is designed to deliver the performance of the Elwood Blockchain Global Equity Index by physically investing in its constituents.
The index provides a clear overview of firms related to the blockchain industry in developed and emerging markets. And it is created to reflect the growth of blockchain technology.
Chris Mellor, Head of EMEA ETF Equity Product Management at Invesco, explained their vision the following way:
“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.”
At the moment, the Invesco Elwood Global Blockchain ETF includes 48 firms that were selected with the help of a scoring system that was designed by crypto investment boutique Elwood Asset Management.
Apple, Intel that produces chips, graphics processing units manufacturer Advanced Micro Devices, Taiwan Semiconductor Manufacturing that manufactures mining hardware and United States exchange supporting Bitcoin futures CME Group are in the list of the chosen companies.
Though a lot of people still believe that the main use case for blockchain is cryptocurrency, it is not really true as the technology can offer much more opportunities and bring much more benefits one can imagine. Bin Ren, Elwood Asset Management CEO, also insists that blockchain can be applied in a variety of spheres. He stated:
“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.”
Expanding Blockchain ETF Market
The launch of the first blockchain ETF on the London Stock Exchange has become a real milestone for the blockchain industry.
At the current moment, there are around six blockchain ETFs that have been listed on Canadian or U.S. stock exchanges. Nevertheless, for investors in the UK, it is the first such an easily accessible opportunity to add to their portfolio investments in blockchain-related firms that’s why it will be interesting to observe how investors in the country will react to this newly introduced option.