ETF provider HANetf has teamed up with ETC Group to launch a dedicated ETF aimed at the fast-evolving market of digital assets and blockchain.
The new ETC Group Digital Assets & Blockchain Equity Ucits ETF (KOIN) will invest in stocks linked to blockchain technologies including cryptocurrency mining, blockchain technology or cryptocurrency trading and exchanges.
The groups behind the fund said blockchain has the potential to add more than $1.37tn to the global economy by 2030, which provides a base for long-term investment opportunities. They added the launch would also provide indirect exposure to digital assets through an efficient, liquid and cost-efficient ETF structure.
Research from ETC Group shows that the index behind the ETF has a correlation of 0.7 to bitcoin, while the fund can also be used as a way to diversify crypto investments as most companies included in the index have diversified business across the full range of crypto assets and activities associated with them.
The KOIN ETF, tracks the Solactive ETC Group Digital Assets and Blockchain Equity index and has a total expense ratio of 0.60%. It marks the first thematic ETF launched by the team at ETC Group.
Bradley Duke, CEO of ETC Group, said: ‘Digital assets and blockchain have begun to persist in almost every sector and industry worldwide. Due its secure data, transparency and efficiency, blockchains and distributed ledger technologies are transforming a wide variety of industries, from banking and financial service, to healthcare and life science.’