Harvest Rebalances Blockchain ETF

Harvest Portfolio announced on Wednesday (May 23) that it has officially completed the quarterly rebalance of its Blockchain Technologies ETF (TSX:HBLK).

According to the company’s press release, the rebalance of the portfolio holdings was completed on May 18 and is comprised of two main segments: the Large Cap Blockchain issuer and the Emerging Blockchain issuer segment.

“By replicating the Harvest Blockchain Technologies Index, HBLK systematically shifts weightings as the Emerging Blockchain segment develops while blending in large established technology companies that are dedicating resources to blockchain technologies,” Michael Kovacs, president and CEO of Harvest said in the release.

The Blockchain Technologies ETF presentation indicates that companies listed are primarily tech firms, payment providers, cryptocurrency miners and consultants and financial areas. It tracks the “leading public companies” focused on blockchain predominantly in North America.

“The ETF invests in equity securities of issuers exposed, directly or indirectly, to the development and implementation of blockchain and distributed ledger technologies,” the press release states.

Following the rebalance, the ETF now tracks 23 holdings up from 21 according to the portfolio metrics. The average market cap for the emerging blockchain segment is $550 million with a weighting of 55 percent, while the large cap average market capitalization is $268 billion with a 44 percent weighting. Cash and other assets and liabilities accounts for a meager one percent of the index’s weight.

On that note, the 10 top holdings on the Blockchain Technologies ETF, current as of May 23, include: Global Blockchain Technologies (CSE:BLOC) with a 5.6 percent weighting; Xunlei (NASDAQ:XNET), which is weighted at 5.4 percent; Luxoft Holding (NYSE:LXFT) also weighted at 5.4 percent; Hut 8 Mining (TSXV:HUT) weighted at 5.4 percent on the index; Overstock (NASDAQ:OSTK), another company weighted at 5.4 percent; HIVE Blockchain Technologies (TSXV:HIVE) which comes in with a 5.3 percent weighting; BTL Group (TSXV:BTL) with a 4.9 percent weighting; Riot Blockchain (NASDAQ:RIOT) at a 4.4 percent weighting; Cognizant Technologies Solutions (NASDAQ:CTSH) also with a 4.4 percent weighting; and finally Accenture PLC (NYSE:ACN), which is also weighted at 4.4 percent.

The Blockchain Technologies ETF is the first blockchain ETF launched in Canada, which entered the market on the Toronto Stock Exchange on February 9. Since then, the ETF has dipped in value by 20 percent. That said, the ETF has increased 0.23 percent to reach $8.64 as of market close following Wednesday’s announcement.

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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.