- Elwood Global Blockchain ETF has started trading on the London Stock Exchange
- Its portfolio will consist of 48 companies, ranked using proprietary system
- The leaders of the company see real-world value in blockchain technology outside FinTech sector
On March 11, 2019, US-based Invesco Elwood Global Blockchain ETF started trading on the London Stock Exchange. Albeit it is not the first, it is the biggest of its kind. Several blockchain-oriented ETFs have been launched previously, but they struggled to attract investors. Now, the situation has changed slightly: for instance, London-based financial technology company Amun, which launched the world’s first exchange traded product tracking multiple cryptocurrencies in November, has just completed a $4.2m fundraising.
A strong portfolio
The Invesco ETF’s portfolio will consist of 48 companies. It will depend on the score determined by proprietary system of Elwood Asset Management, which companies will be included. Some of the firms that made it to the initial list are Taiwan Semiconductor Manufacturing, supplying cryptocurrency manufacturers with mining chips, CME Group, the US exchange operator that is a pioneer in Bitcoin futures trading, as well as tech giants such as Apple, Intel and AMD.
According to Kevin Beardsley, Head of Business Development at Elwood, the index currently focuses on companies where the value attributable specifically to blockchain technology is either in the ‘developing’ or ‘potential’ phase. He said:
“These are companies with assets that are well-positioned to capitalize on the emerging opportunities for blockchain.”
Not only cryptocurrencies
In the last year, many companies and even governments started to seek practical applications of the blockchain in the real world. According to Elwood CEO Bin Ren, the blockchain technology can have many use cases outside the cryptocurrency sphere as well. He said:
“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.”
Gary Buxton, Head of EMEA ETFs, shares Bin Ren’s optimism. He added:
“We believe the potential for blockchain technology to disrupt the status quo of companies in virtually every industry makes for a strong long-term investment case.”