News Flash - Invesco's Indian arm launching CoinShares Global Blockchain ETF
In order to provide India investors an avenue to invest in the crypto market, Invesco Asset Management (India) is launching Invesco CoinShares Global Blockchain ETF fund of funds (FoF).
The fund will give Indian investors exposure to blockchain technology companies, such as Coinbase and MicroStrategy, through a new pooled fund that invests in several sub-funds.
The feeder fund will open to Indian investors via a new fund offer (NFO) on 24 November and closes on 8 December. The FoF will feed into an Ireland-domiciled ETF (exchange traded fund) that invests in a mix of crypto-related companies and broader tech companies.
According to Invesco Asset Management’s presentation, the underlying fund, Invesco CoinShares Global Blockchain UCITS ETF, aims to achieve the performance of the CoinShares Blockchain Global Equity Index.
The review document further said, “During the quarter ended October 2021, the CoinShares Blockchain Global Equity Index generated a total return of 12.9%. This strong quarter was primarily driven by a resurgence in crypto prices."
Based in Ireland and launched on 8 March 2019, Invesco CoinShares Global Blockchain ETF has a size of $1.075 billion. Since its inception, the ETF has delivered 238% in absolute terms compared to the 1,572% return delivered by Bitcoin.
The Invesco ETF has a mix of crypto-related stocks and companies that are in the broader tech space. The ETF’s largest holding (4.83%) is Coinbase Global Inc., a US-based cryptocurrency exchange. It’s second largest holding (4.34%), GMO Internet is a Japanese company engaged in businesses such as ‘internet infrastructure, online advertising and media, internet finance businesses and cryptocurrency’, according to its website.
Around 65% of the ETF’s portfolio is in blockchain-related companies and 35% is in companies providing broking services, mining operations or are crypto asset exchanges, or provide financial services, it is to be noted.
The Invesco India presentation points to the increasing adoption of blockchain tech in the world, including India. The BFSI sector is leading the blockchain adoption in India. There are more blockchain solution implementations across major banks and insurance companies.
According to a Nasscom (National Association of Software and Service Companies), a trade association and advocacy group focused mainly on the technology industry of India report, ICICI Bank has been using blockchain in international remittances and Bajaj Allianz General Insurance using blockchain in claims settlement.
Private companies and government institutions in India are mulling to adopt blockchain in their various activities.
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