By Staff Reporter
In a sign that the blockchain is increasingly piquing the interest of global fund managers, Invesco is set to launch an exchange- traded fund that would include companies that derive earnings from blockchain, the Financial Times reports.
The Invesco Elwood Global Blockchain ETF is scheduled to start trading on the London Stock Exchange on Monday (March 11).
The portfolio companies in the ETF will include companies such as Taiwan Semiconductor Manufacturing, which supplies cryptocurrency manufacturers with mining chips, and CME Group, the US exchange operator that has pioneered bitcoin futures trading.
Other companies in the ETF, which carries a 65 basis points management fee, include Apple, Intel and Advanced Micro Devices.
The ETF will initially invest in a portfolio of 48 companies based on a proprietary scoring system developed by Elwood Asset Management, a specialist crypto investment boutique backed by Alan Howard, co-founder of the Brevan Howard hedge fund, according to the FT.
So far, several blockchain-based ETFs have been launched in the US. They include the Amplify Transformational Data Sharing ETF, Reality Shares Nasdaq Nextgen Economy China (which targets blockchain firms in China) and Innovation Shares NextGen Protocol ETF.
First Trust, the US asset manager, launched the first European-listed blockchain ETF on the Italian stock exchange in February last year. The Innovative Transaction & Process ETF has just over $20m in assets.