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New Blockchain ETF to be Introduced on the London Stock Exchange

BY Luke Flowers – Crypto Specialist

A brand new blockchain Exchange Traded Fund (ETF) could be introduced on the London Stock Exchange (LSE) as detailed through CNN. The ETF won’t track the value of the assets themselves, but the companies behind the blockchain industry. The ETF is reportedly to be introduced by a partnership between American firm Invesco and British digital asset investment company, Elwood.

The ETF will initially feature 48 companies all with affiliation to the blockchain industry including the likes of Overstock, Square, Verizon and even Samsung. The fund is officially to be called the ‘Invesco Elwood Global Blockchain UCITS ETF’, providing investors with wide exposure to companies that are proactive in the crypto space without having to buy and sell cryptocurrency assets.

Though the fund is launching in the UK, 39% of the companies making the listing come from the US. Companies range from digital asset exchange services like Square for selling Bitcoin, to companies like TSMC that manufactures chips for blockchain technology. The ETF even considers a company that operates in the physical mining industry, Rio Tinto and suggests the wide-ranging impact blockchain technology can have on other industries.

An ETF such as this is not the same as the conventional ETF many investors are hoping for as it’s not dictated by an underlying cryptocurrency asset. Investors will not be able to use the ETF to indicate the value of the cryptocurrency markets and so cannot use it to determine the best time to sell crypto. Never the less this ETF that focuses on the major organisation involved in blockchain technology is strong endorsement and could be used to suggest the overall health of the industry.

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