By
Bena Ilyas
April 22nd, 2024
Societe Generale Private Banking has announced the launch of a new Luxembourg-listed, actively managed exchange-traded note aiming to target the blockchain sector.
As it has become known today, one of the leading private banks in Europe, Societe Generale Private Banking, owned by Kleinwort Hambros, has announced the launch of a new Luxembourg-listed, actively managed exchange-traded note (ETN). This is how the financial institution is targeting the blockchain sector.
ETNs are very similar to ETFs, as they both are designed to track an underlying asset, often have lower expense ratios than actively managed mutual funds, and trade on the major exchanges just like stock. The main difference between them is that when you invest in an ETF, you are investing in a fund that holds the asset it tracks, while an ETN is an unsecured debt note issued by an institution.
The ETNs of Societe Generale will be available exclusively to existing and prospective clients. It will invest in companies that could “profit most” from the development and increasing uptake of blockchain technology. The blockchain note will initially have 20 stocks diversified across areas including technology, shipping, oil and gas, custody and industrials.
The initial basket of stocks will include companies carefully selected to benefit from the potential growth of blockchain, either through the sale of software services, or through the improvement in margins that the installation of blockchain technology may produce.
As Kleinwort Hambros’ portfolio manager John Birdwood has commented:
“We have seen increasing interest from clients in the area of blockchain and we are very excited to be able to cater to this demand with the launch of our first blockchain note. We have built an innovative product which will provide our clients with the diversified exposure to the promising growth prospects blockchain technology offers, while maintaining the rigorous active management our clients expect.”
According to the official press release, the exchange-traded note (ETN) will be available exclusively to existing and prospective clients for a minimum investment of £1,000 GBP. The centuries-old bank has assets under management of £14.2 billion ($18.52 billion) and over 900 employees as of last year, according to its own figures.
It cannot but be reminded that last month, United States-based asset management company Invesco has launched a blockchain exchange-traded fund (ETF) on the London Stock Exchange (LSEG). The first publicly-traded blockchain ETF on a British stock exchange has been named the Invesco Elwood Global Blockchain ETF.