ETF issuer Global X ETFs has announced the launch of the Global X Blockchain ETF (BKCH) on London Stock Exchange and Deutsche Börse Xetra.
The fund will be Global X’s first Blockchain UCITS ETF to launch in Europe, adding to the firm’s growing UCITS product line-up.
The firm writes that digitalisation is accelerating the transformation of many industries, with the rise of blockchain and digital assets potentially upending traditional finance.
“Cryptocurrencies are now valued in the trillions of dollars in market capitalisation and some institutional investors are warming up to the asset class, which they recognise as a portfolio diversifier. Among the biggest cryptocurrencies, bitcoin now has a market cap of over USD790 billion, and Ethereum is valued over USD370 billion. Yet what began with bitcoin as the first major application of blockchain technology is now evolving to include valuable use cases ranging across several segments of the economy, including smart legal contracts, tracking and monitoring supply chains, and accessing and sharing health care records,” the firm says.
“Blockchain technology’s transparent, verified transactions and immutable recordkeeping offer significant promise, and there is a growing industry of companies contributing to its development,” says Morgane Delledonne, Director of Research, Europe. “Leveraging Global X’s expertise and knowledge of the rapidly evolving blockchain landscape, BKCH will allow European investors to gain exposure to the asset class across a range of different sectors and industries.”
With a management fee of 0.50 per cent, BKCH is designed to provide investors access to a broad swath of companies positioned to benefit from increased blockchain adoption. This includes digital asset mining, blockchain & digital asset transactions, blockchain applications, digital hardware, and asset integration. The fund tracks the Solactive Blockchain v2 Index and will join Global X’s existing lineup of 18 UCITS ETFs in the European market.
