Blockchain Bandwagon


Third bitcoin and cryptocurrency ETF listed in three weeks

White-labeller Exchange Traded Concepts and Penserra Capital are teaming up to list a new ETF that tracks companies most exposed to blockchain and cryptocurrencies. The Innovation Shares NextGen Protocol ETF (KOIN) tracks an index which, after selecting for liquidity requirements, identifies companies using keywords.

Companies which use enough blockchain and crypto-related keywords are then put in four tiers based on how committed they are.

(1) “Cryptocurrency Payees:” companies that accept cryptocurrency as payment and are developing blockchain payment solutions;

(2) “Mining Enablers:” companies that create hardware to enable creation of new blockchains or are mining blockchains as their main business;

(3) “Solutions Providers:” companies that assist organizations in the creation and implementation of blockchain applications; and

(4) “Blockchain Users:” companies that primarily use blockchain technology to increase their own operational efficiencies, optimize settlement processes, enhance their customers’ experience and/or increase data security/integrity, the prospectus says.

Companies in the higher tiers receive greater weighting, with weighting within tiers based on market capitalisation. The maximum number of companies in each tier is 15. At the time of rebalancing, each company is capped at a maximum of 7%.

JPMorgan lists smart beta debt tracker

JPMorgan is simultaneously listing a new smart beta debt ETF in the US and UK. The JPMorgan USD Emerging Markets Sovereign Bond ETF (JPMB), which was listed on the London Stock Exchange last week under the same ticker and fund name, will track an in-house bond index, called the JPM Emerging Market Risk-Aware Bond Index.

The index provides exposure to USD denominated sovereign debt across emerging markets. It picks sovereign debts based on a three-step process designed to lower risk while still providing good returns. First, the index filters for liquidity by excluding debts with smaller face values and close maturity dates. Second, it limits concentration risk by removing countries with the highest spreads. Third, it spreads sovereign risk among investment grade and high yield countries.


PingAn lists CSI 300 tracker

Chinese duo Pingan and UOB are listing a new ETF, the Pingan-UOB CSI 300 ETF Index Launched Fund (510390). The fund tracks the CSI 300.


On 2nd April 2018, iShares will begin the global rollout of the Fund Data File (FDF), as successor to the current Portfolio Composition File (PCF).Details here