Blockchain ETF Launched by First Trust
First Trust Global Portfolios has launched what it claims is the first blockchain exchange traded fund (ETF).
The Innovative Transaction and Process ETF will physically track the Indxx Blockchain index, investing in a spread of companies that are actively investing in blockchain technology.
The companies will need to have a market value of $250 million and a daily turnover of $1 million. The index will be capped at 100 stocks and be rebalanced semi-annually.
The ETF will have a total expense ratio of 65 basis points.
The CEO at First Trust Global Portfolios Derek Fulton said:
“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”.
‘The First Trust Indxx Innovative Transaction and Process Ucits ETF offers exposure to this growing investment class leveraging the liquidity and efficiency that a Ucits ETF structure provides.’
Rahul Sen Sharma, the Indxx partner said, that the company is glad to have developed one of the world’s first indices to provide diversified exposure to the global blockchain space. Blockchain is a new technological introduction and the new index will be effectively targeting new transparent approach.