The Bitcoin ETF is possibly the biggest thing that many crypto enthusiasts are looking forward to but the independent investment management firm Invesco has recently announced the launch of the world’s biggest blockchain focused ETF.
The company, which has more than $800 billion in assets under management, will release the blockchain focused ETF which will include a portfolio of around 50 different firms with exposer to blockchain technology.
Some of the given examples were that of Taiwan Semiconductor Manufacturing, which supplies manufactures crypto mining machines with chips, as well as the CME Group, which was the first regulated exchange in the United States to launch Bitcoin futures.
Chris Mellor is the European head of ETF equity product management of Invesco and has allegedly stated that the potential for blockchain “to boost earnings was often not reflected in the share prices of companies such as Rio Tinto, the mining company that owns hydroelectric assets that could be harnessed for cryptocurrency mining.” The report continues saying:
“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.”
Bin Ren is the Ceo of Elwood Asset Management who noted potential applications for blockchain technology go beyond cryptocurrencies. As he says, we are currently starting “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.”
On top of this, there are other ETFs out there that have a prime focus on the blockchain. Most of these have brought in very little capital though.
Many investors have shown a keen interest in Wall Street firms betting on cryptocurrencies and the underlying technology in them. Fourteen public listed firms with exposure to the crypto ecosystem complied Yahoo Finance was outperforming the S&P 500 earlier in the year.
These companies include:
- Advanced Micro Devices (AMD)
- Bitcoin Investment Trust (GBTC)
- Cboe Global Markets
- CME Group
- Goldman Sachs
- Interactive Brokers Group (IBKR)
- Nasdaq (NDAQ)
- Nvidia (NVDA)
- Overstock (OSTK)
- Square (SQ)
- TD Ameritrade (AMTD)