Independent investment management company Invesco, which has more than 800 billion dollars in its account, announced the launch of the world’s largest blockchain-oriented ETF. Chris Mellor, the head of Invesco’s ETF funds in Europe said “the blockchain used to increase profits often does not affect the stock prices of companies such as Rio Tinto, a mining company that owns hydropower assets that can be used for mining cryptocurrency.”
The ETF will initially invest in a portfolio of 48 companies based on its own valuation system developed by Elwood Asset Management, a specialized cryptocurrency boutique supported by Alan Howard, co-founder of hedge fund Brevan Howard.
Bin Ren, Elwood’s CEO, noted that potential applications for blockchain technology go beyond cryptocurrency. He said, “We are beginning to see technology used, in particular, by financial companies but we expect its wider application in a wide range of industries.”
Name of some of the companies in which ETF will invest are: Taiwan Semiconductor Manufacturing, which supplies cryptocurrency machine manufacturers with chips; CME Group, the first US regulated exchange with bitcoin futures; as well as Apple, Intel, and Advanced Micro Devices (AMD).
There are other blockchain-oriented ETFs in the market, although most have attracted a relatively small amount of capital. According to ZeroHdge the largest of them which is ETF Amplify Transformation Data Sharing, has assets of 110 million dollars.
In particular, investors showed interest in Wall Street firms that bet on cryptocurrency and the emerging technologies behind them. A group of 14 public companies that have access to a cryptoecosystem compiled by Yahoo Finance surpassed the S & P 500 earlier this year.