By
Chimamanda U. Martha
April 2nd, 2024
Coinsquare has taken a decision to go in for exchange-traded fund business, its subsidiary has launched two exchange-traded funds.
As it has been reported, Coin Capital Investment Management Inc. (Coincapital), the portfolio management division of the Coinsquare digital asset trading platform, launched two new, technology-focused exchange-traded funds (ETF) on the Toronto Stock Exchange (TSX). The introduction of two new ETFs focused on global emerging technologies has made Coin Capital the 30th ETF operator in Canada.
The trading of the Coincapital STOXX Blockchain Patents Innovation Index Fund (LDGR) and the Coincapital STOXX B.R.AI.N. Index Fund (THNK) started on Thursday, September 20, with a management fee of 0.64 per cent on the Toronto Stock Exchange that is the 12th largest global stock exchange by market capitalization.
Commenting their new move, Lewis Bateman, Coincapital CEO, said:
“Canadians know technologies like AI and the blockchain are going to change the way we live and work, but it can be difficult to access high-quality investments in these sectors without deep domain expertise. We’re doing the work for investors, using our in-depth industry knowledge to provide Canadians with an innovative suite of investment options that help them invest in new technology even if they’re not an expert.”
LDGR is a research-focused ETF that is aimed at giving investors an access to global equity securities of businesses that are making investments in the studies and development of blockchain technologies. LDGR is based on the recently-launched index called iSTOXX Yewno Developed Markets Blockchain Index that is used to find companies working with distributed ledger technology (DLT). Mastercard Inc., Johnson Controls PLC and Royal Bank of Canada are among the top holdings of the index.
As for the second ETF, THNK will be used to ensure investments in global equity securities of firms that focus their activities on four emerging technologies included into the so-called “B.R.AI.N sector” – biotechnology, robotics, artificial intelligence (AI), and nanotechnology. THNK is based on the iSTOXX Developed Markets B.R.AI.N Index, which reportedly holds stock in Nvidia Corp., Intel Corp. and Facebook.
This year blockchain technology has already attracted attention of several ETF providers. In January, Harvest Portfolios became the first company that managed to launch an ETF that searches the technology with the Blockchain Technologies ETF (HBLK).
Having launched the first Canadian blockchain-based ETF, the firm has provided its customers with a possibility to make investments in securities focused on large and small-scale blockchain corporations. The fund was based on the company’s own Harvest Blockchain Technologies Index.
Other funds that have been created this year inslude First Trust Index Innovative Transaction & Process ETF (BLCK), Evolve Blockchain ETF (LINK) and Horizons Blockchain Technology & Hardware Index ETF (BKCH). This tendency shows that though interest in cryptos fluctuates namely depending on the market conditions, investments in the development of blockchain technology boast persistent character.