TORONTO, June 2018 /CNW/ – Horizons ETFs Management (Canada) Inc. (“Horizons ETFs”) has launched the Horizons Blockchain Technology & Hardware Index ETF (“BKCH”). Units of the exchange traded fund (“ETF”) will begin trading today on the Toronto Stock Exchange (“TSX”), under the ticker symbol BKCH.
BKCH seeks to provide investors with diversified exposure to companies involved in the new, disruptive technology frontier: the blockchain – a shareable digital ledger that logs and tracks valuable information such as transactions or assets, offering virtually endless applications.
BKCH seeks to replicate, to the extent possible, the performance of the Solactive Blockchain Technology & Hardware Index (the “Index”) net of expenses. Unlike any other blockchain fund, the unique, three-tiered construction of BKCH’s Index gives investors exposure to the greater blockchain technology ecosystem. The Index tracks a portfolio of global companies focused directly on three specific subsectors of the broader technology industry:
Development of blockchain technology: Companies directly developing blockchain-related applications.
Semiconductors: Companies focused on the hardware required for blockchain technology mining.
Relevant hardware and services supporting blockchain technology: Includes memory and storage producers, and services important to large-scale mining on a commercial level, such as data centre real estate investment trusts.
“BKCH provides a diversified way to enter blockchain investing without taking on a lot of the risks of buying unknown, early stage technology companies,” said Steve Hawkins, President and Co-CEO of Horizons ETFs. “Investors get exposure to a global portfolio of some of the larger pure-play blockchain companies, alongside well-established, global technology service and semiconductor providers that are benefiting from the growing global investment in this transformative technology.”
The ETF will have substantial exposure to U.S.-listed securities as well as securities listed in other foreign countries.
“From medical records, to natural resources to financial services, the applications of blockchain technology are practically endless,” said Mr. Hawkins. “As the blockchain industry grows, so too will the potential holdings of BKCH, as more companies invest in developing blockchain technology directly or technology that supports the blockchain ecosystem.”
While BKCH may provide exposure to miners, exchanges and other companies with cryptocurrency exposure, the ETF will not have direct exposure to physical crypto-assets and/or cryptocurrencies such as Bitcoin or initial coin offerings. Furthermore, the ETF will not be directly involved in cryptocurrency mining.