The first ever blockchain exchange-traded fund (ETF) in Canada will finally launch on the Toronto Stock Exchange after gaining approval from the Ontario Securities Commission.
It was independent Canadian investment management company Harvest Portfolios that made the first move, filing the required documents for its Blockchain Technologies ETF (HBLK) back in January. Their goal is to be able to help Canadian investors to access opportunity to buy into the booming blockchain technology sector. Through the ETF, they aim to track blockchain technology projects, much like their own Harvest Blockchain Technologies Index.
According to Harvest Portfolios, the fund will essentially invest “in equity securities of issuers exposed, directly or indirectly to the development and implementation of blockchain and distributed ledger technologies.”
The Globe and Mail reports that there are also two other Canadian companies following Harvest Portfolios suit, and have already submitted their first prospectuses to the regulators. One of them is First Trust Portfolios Canada, already a player in the US market with a blockchain ETF offering under the ticker LEGR. The company reportedly made the decision to extend its reach to Canada through their First Trust Indxx Innovation Transaction & Process ETF (BLCK) duet to client demand.
Said Karl Cheong, head of ETFs for First Trust Portfolios Canada, “Every conversation we are having with clients – regardless if we are talking about a Canadian equities product or a US equity product – inevitably leads to [a discussion about] blockchain or bitcoin.”
Meanwhile, the other party getting onboard the EFT train is Evolve Funds Inc. with their proposed blockchain ETF, LINK. According to them, this will become the first ETF in Canada to be “actively managed” by the investors. With this, the expectation is that the company will be able to “capitalize on emerging opportunities in the industry.”
Furthermore, their fund will invest in “equity securities of issuers that are involved in the research, development, or utilization of blockchain technologies, or involved in the supply chain for blockchain applications including technology hardware.”