The Bitcoin ETF approval by the SEC in the intend states has been long overdue. This is one of the factors that was produced to invite institutional investors and lead to mass adoption of cryptocurrencies around the United States and the world as a whole. Unfortunately, the SEC is yet to approve Bitcoin ETF. Far away in the London Stock Exchange, another blockchain chain ETF went live yesterday.
Invesco Management Launches Blockchain ETF On The London Stock Exchange
Yesterday, the blockchain exchange-traded fund developed by an investment management firm, Invesco, went live on the London Stock Exchange. To make this possible, Invesco Management had to enter a partnership with Elwood Assets Management. Elwood Asset Management is a digital asset focused asset management firm. Together, they launched a blockchain ETF known as Invesco Elwood Global Blockchain UCITS ETF. During the announcement, the company stated that the goal of the blockchain ETF which is similar to the Bitcoin ETF is to allow companies to earn profit from blockchain technology.
The head of EMEA (an acronym used to represent, Europe, the Middle East, and Africa) ETF equity product management at Invesco Chris Mellor said:
“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 blockchain ETF has a 0.65% yearly management fee and it intends to physically deliver the performance of the Elwood Blockchain Global Equity Index. It’s going to be similar to a physically delivered Bitcoin derivative. It would represent a physical investment in the blockchain. The index is being calculated by Solactive AG. Solactive AG is a Germany-based financial indices provider. The company currently has about 48 companies in its portfolio.
Bin Ren of Elwood had this to say about the blockchain ETF on the London Stock Exchange:
“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.”
While the United States wait for the Bitcoin ETF approval from the SEC, those who trade in the London stock exchange can enjoy the Elwood ETF anytime they want. While this may not have a direct influence on cryptocurrency prices, it is going to create more awareness for the underlying blockchain technology. This, in turn, will open the world to other benefits of blockchain technology.
Bitcoin (BTC) Price Today – BTC / USD
Do you think listing a blockchain ETF on the London Stock Exchange will encourage the U.S SEC to approve the Bitcoin ETF? Will the listing of a blockchain ETF promote the adoption of the emerging technology? Share your thoughts with us.
Max writes about blockchain projects and regulation with a special focus on United States and China. He joined Smarterum after years of writing for various media outlets.