Invesco launches blockchain ETF on London Stock Exchange

Investment management company Invesco has announced the launch of a blockchain exchange-traded fund (ETF) on the London Stock Exchange, CoinDesk reported.

In collaboration with Elwood Asset Management, Invesco has developed the Invesco Elwood Global Blockchain UCITS ETF, which is designed to target companies with potential to generate real earnings from blockchain technology.

“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,” Chris Mellor, Head of EMEA ETF Equity Product Management at Invesco, said.

The ETF aims to deliver the performance of the Elwood Blockchain Global Equity Index by physically investing in the index constituents. It offers exposure to global companies that participate or have the potential to participate in the blockchain space.

Speaking in terms of sector allocations, the index currently has 46% in information technology, 23% in financials, 9% in communication services and 8% in both the materials and consumer discretionary sectors. The three largest geographical allocations are to the US (39%), Japan (29%) and Taiwan (12%), the official release said.

“The majority of the index is currently allocated to companies where the value attributable specifically to blockchain technology is either in the ‘developing’ or ‘potential’ phase,” Kevin Beardsley, Head of Business Development at Elwood, explained.

“These are companies with assets that are well-positioned to capitalize on the emerging opportunities for blockchain. Over time, however, we would expect the balance to shift naturally to companies with more significant direct exposure to blockchain-related earnings as the technology becomes more ubiquitous.”