The very first blockchain ETF has been launched by First Trust Global Portfolios. According to press release, the First Trust Indxx Innovative Transaction and Process ETF is going to physically track what is called the Indxx Blockchain index. The Blockchain Index is currently investing in a variety of companies whose major investments come from the blockchain industry.
Some of the parameters of the Blockchain ETF include: total expense ratio at 65 basis points, rebalancing twice per year, cap will be at 100 different stocks. Also, companies that are going to be invested should have a market cap of at least $250 million with an average daily turnover of around $1 million.
It is indeed natural for such an ETF to come into existence, especially with all the interest coming from multiple sectors and industries. Blockchain has disrupted the medical world, agribusiness, retail, real estate and many more.
The CEO of First Trust Global Portfolios commented on the new Index:
“We are pleased to bring to market this innovative Ucits ETF – BLOK. With an increasing number of institutions harnessing blockchain technology and applications spanning a wide range of industries, we believe the efficiency, auditability and transparency provided by blockchain offers the potential for significant growth opportunities.”
While many wonder when the first Bitcoin ETF will come into “play”, the underlying technology behind the digital currency is gaining full speed ahead with the UCITS ETF, giving investors the opportunity to take advantage of leverage and liquidity on the blockchain arena.
The growth of the ETF market has been remarkable. ETFs provide investors with efficient and transparent way to diversify their portfolios.