The First Trust Indxx Innovation Transaction and Process ETF will track the Indxx Blockchain index, providing investors with exposure to companies that are investing in blockchain technology.
Derek Fulton, CEO at First Trust Global Portfolios, said: “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.”
Focusing exclusively on active enablers and users of blockchain, the index will invest in companies with a minimum market cap of $250m (£176m, €202m) and a three-month average daily turnover value of $1m.
Currently, the ETF has 82 holdings and will be capped at 100 stocks. Rebalanced semi-annually, it has a total expensive ratio of 65 basis points and was listed on the London Stock Exchange on 11 April.
Rahul Sen Sharma, partner at Indxx said: “We believe that blockchain is an exciting new technological innovation and our index research and development team is proud to have built an index that effectively targets it via a disciplined and transparent approach.”
Blockchain has come to prominence as the technology behind cryptocurrency Bitcoin, of which the wealth management community has been widely skeptical. However, the ledger technology has applications beyond the cryptocurrency.
Last year, deVere Group launched deVere Crypto, a cryptocurrency app which allows users to store, transfer and exchange Bitcoin, Ethereum and Litecoin.