The Toronto Stock Exchange will from today list a new blockchain based ETF on their platform.
ETF (Exchange traded fund) is a “marketable security that tracks an index, a commodity, bonds, or a basket of assets.” In contrast to mutual funds, an ETF trades similar to a common stock on a stock exchange and goes through price alterations throughout the day as they are purchased and sold.
The Horizons Blockchain Technology and Hardware Index EFT, which will be part of similar ETF’s from Harvest Portfolio Group Inc. and Evolve Funds Group Inc., wants to make itself unique by supporting firms such as Hive Blockchain Technologies Ltd, Nvidia Corp, Digital Realty Trust Inc. and so on which create hardware and services which fuel the blockchain technology.
During an interview with Bloomberg Steve Hawkins, co-chief officer of Horizons ETFs Management Canada Inc. noted “We don’t know which individual blockchain companies are going to work, we have no idea what the extent of the blockchain applications will be, but we do know people will have to invest in the infrastructure to build out blockchain.”
The ETF plans to provide an opportunity for investors who want to invest in the infrastructure which supports the blockchain technology instead of the new blockchain startups or cryptocurrencies. Bitcoin-based ETF’s Ark Web x.0 ETF (ARKW) and the Ark Innovation ETF (ARKK) were the top performing ETF’s of 2017.