New Blockchain ETF Goes Live on London Stock Exchange

blockchain ETF London Stock Exchange Invesco Elwood Global Elwood Asset Management

An exchange traded fund investing exclusively in blockchain companies has been launched on the London Stock Exchange this week, giving investors access to investments pegged to the success of the blockchain sector.

Widely considered a key instrument for encouraging institutional investors into the blockchain space, the ETF was started by investment firm Invesco, in partnership with Elwood Asset Management.

Known as the “Invesco Elwood Global Blockchain UCITS ETF,” Elwood said the fund would target investments in companies producing “real earnings” from the blockchain space.

Chris Mellor, head of EMEA equity product management at Invesco, said the ETF offered opportunities for investors to capitalize in companies with value not yet reflected in their underlying share price.

“The potential for blockchain to drive real earnings is huge, but it is often hidden within companies involved in other areas. This ETF offers investors access to companies with real earnings now, but with the added potential of blockchain-related earnings not reflected in their share prices.”

The fund invests in 48 selected blockchain companies, which comprise Elwood’s Blockchain Global Equity Index, with the EFT “physically investing in the index constituents.”

Bin Ren, CEO of Elwood, said the fund allows investors to capitalize on the anticipated future role of blockchain in the global economy, described as “underappreciated.”

“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.”

Among those companies comprising the fund are Overstock, CME Group, messaging giant Kakao, Monex Group, Square and Signature Bank.

IT and financial sector investments make up the bulk of the portfolio, accounting for 46 percent and 23 percent respectively, with the bulk of the funds in the U.S., Japan and Taiwan.

The fund presents a new offering for investors interested in developments in the blockchain sector. At the time of writing, the fund was up 0.14 percent on the day to 40.7100 USD.

With blockchain ETFs hotly anticipated, especially on the New York exchange, it remains to be seen whether the Elwood/Invesco model proves successful long term.