Bitcoin ETFs are the talk of the town in the crypto universe, but sadly the US Securities and Exchange Commission (SEC) doesn’t look ready to approve one. In Europe, the landscape is rather different, with several nations launching crypto related exchange traded products (ETPs). This time around, the London Stock Exchange listed the Invesco Elwood Global Blockchain ETF, the first European exchange to list a blockchain ETF that invests in a number of different companies operating in the blockchain space. This bold move means the American markets will have to play catch up with European regulators once more.
Investing in the Future of Blockchain
The Invesco Elwood Global Blockchain ETF doesn’t actually give investors any exposure to individual cryptocurrencies, but instead it gives exposure to a basket of more than 50 companies, all of which are using blockchain technology. It works exactly the same way as the First Block Capital DTL ETF that’s been trading since October 2018 on the NEO Connect exchange in Canada, and is jam-packed full of the biggest names using blockchain tech.
No Little Firms Allowed
In the Invesco Elwood Global Blockchain ETF, you’re not going to see startups and tiny names – only big players are allowed. Some of the brands included in the ETF are Walmart, IBM, and Taiwan Semiconductor Manufacturing. The ETF is complete with its own scoring system whereby firms accumulate points based on several key factors. Then the top 50 companies are taken and introduced into the ETF.
Switzerland Gets the First ETP
In case you missed it, back in November 2019 the Swiss stock exchange SIX launched an ETP that invests into Bitcoin, XRP, Ethereum, Bitcoin Cash. and Litecoin. With the ticker HODL, The Amun Crypto ETP is the first of its kind to be traded on a stock exchange. This is a clear sign that Europe is looking to the future of finance and digital assets and it’s noticing that crypto will play a huge part. Getting ahead of the game is key to longevity and success, so hurry up America.
While there is still no talk of a Bitcoin ETF being made available in Europe, it’s likely to be the first continent to list one. European laws are becoming more crypto friendly with every passing week, and more nations in the continent are pushing harder to become blockchain hubs. America is starting to follow suit, but it’s still a long way behind the European regulators and exchanges.