Invesco, an independent investment management firm, launched its ETF in the London Stock Exchange. The Atlanta-based firm partnered with digital asset company, Elwood to develop Invesco Elwood Global Blockchain exchange-traded fund. This ETF will be invested in 48 companies listed on their Equity Index.
The basket of companies includes Taiwan Semiconductor Manufacturing, a crypto mining chip manufacturer; CME Group and Cboe, which launched Bitcoin futures trading in December 2017; payment processing company Square, which reported $166 million in Bitcoin sales in 2018 through its crypto-friendly Cash App; Samsung, which is reportedly integrating a crypto wallet in its new Galaxy S10 model to support Ethereum; Ripple partner SBI Holdings, operator of new crypto exchange VC Trade; and Overstock, operator of tZero, a blockchain-based Bitcoin and crypto trading system.
Other big tech companies include Amazon, Apple, Intel, Microsoft and Rakuten.
In the announcement, Bin Ren, CEO of Elwood, said :
“The three largest geographical allocations are to the US (39%), Japan (29%) and Taiwan (12%). The index is calculated for Elwood Asset Management by Solactive AG, a globally recognized index provider with expertise in tailor-made indices. The index is reviewed and rebalanced quarterly.”
According to the announcement,
“Blockchain has been around for a decade, but many people still see it just as the technology behind cryptocurrencies. The true potential, however, may extend far beyond that. We are beginning to see the technology being used by financial services companies in particular, but we expect the greater application of blockchain technology across a wide range of industries. We believe the potential for blockchain to change the global economy is greatly underappreciated in today’s market, much like the internet was in the beginning, when most people couldn’t see past its usefulness for email.”
“The ETF aims to deliver the performance of the Elwood Blockchain Global Equity Index by physically investing in the index constituents. The index offers exposure to global companies in developed and emerging markets that participate or have the potential to participate in the blockchain ecosystem. It is designed to evolve with the potential growth of blockchain technology.”