UK Approves Blockchain ETF
UK Approves Blockchain ETF

Blockchain ETF Approved by UK Financial Authority

Yesterday a Blockchain ETF (exchange traded fund) began operating on the London Stock Exchange. The ETF was launched by experienced American-based firm Invesco in collaboration with U.K. based Elwood Asset management. Elwood Asset Management was founded in 2018 and specializes in digital assets. Together they have launched the "Invesco Elwood Global Blockchain UCITS ETF".

Elwood announced the news via press release. The press release included statements from Elwood CEO & Executives from Invesco.

Bin Ren, CEO of Elwood, explains, "Blockchain has been around for a decade, but many people still see it just as the technology behind cryptocurrencies. The true potential, however, may extend far beyond that. We are beginning to see the technology being used by financial services companies in particular, but we expect greater application of blockchain technology across a wide range of industries. 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."

What Is an ETF & How Does it Affect Cryptocurrencies?

An ETF is short for an exchange traded fund. It works as a marketable security that tracks a stock index, bonds, assets or commodities. Unlike other funds, ETFs are required to own its underlying assets whether it be stocks, oil, gold or bonds. 

It is important to note that the blockchain ETF launched in London is quite different than the Bitcoin ETF launched in Japan & petitioned in New York. The blockchain ETF in London is comprised of stocks from 52 companies that deal with blockchain in one way or another. Amongst the companies listed in the London blockchain ETF is: Samsung, Nvidia, and Plus500.

While the launch of the London blockchain ETF is not likely affect the price of Bitcoin directly, it is a sign of institutional adoption. One can hope to see a Bitcoin ETF traded both in London & New York in the near future.



Written by Jonathan Ganor

Writer & cryptocurrency aficionado

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