Horizons Launches Blockchain ETF on the TSX

Another blockchain ETF has been officially been launched in Canada. 

Horizons ETF Management Canada announced on Thursday (June 21) the launch of the Horizons Blockchain Technology & Hardware Index ETF (TSX:BKCH), which officially began trading on Canada’s premier stock exchange on Thursday.

The ETF is based on the Solactive Blockchain Technology and Hardware Index, which tracks companies focused on blockchain and cryptocurrencies in addition to companies that provide hardware and hardware-related services that are used in connection with the mining services behind blockchain and cryptocurrencies.

“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,” the press release reads.

In relation to the companies the index tracks, the press release further details that the holdings include those that have a focus on three key subsectors of the broader technology industry, such as:

• development of blockchain technology, which are companies that directly develop blockchain applications;
• semiconductors, which are companies that focus on the hardware for blockchain mining;
• and hardware and services that support blockchain technology, which includes memory and storage producers as well as services instrumental to large-scale mining on a commercial level, including data center real estate investment funds.

“BKCH provides a diversified way to enter blockchain investing without taking on a lot of the risks of buying unknown, early stage technology companies,” Steve Hawkins, president and Co-CEO of Horizons ETFs said in the release. “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.”

While the Horizons Blockchain Technology & Hardware Index ETF  will provide exposure to companies that develop or have a hand in the technology behind blockchain and cryptocurrencies, it won’t have direct exposure to physical cryptocurrency assets or cryptocurrencies in general or initial coin offerings (ICOs), nor will it directly be involved with cryptocurrency mining.

The newly-launched ETF will also provide exposure to US-listed securities in addition to companies listed in other countries. Some of the index’s holdings include: Advanced Micro Devices (NASDAQ:AMD), CyrusOne (NASDAQ:CONE), HIVE Blockchain (TSXV:HIVE), Intel (NASDAQ:INTC), and NVIDIA (NASDAQ:NVDA).

Canada’s first blockchain ETF launched earlier this year by the Harvest Portfolios Group, called the Blockchain Technologies ETF (TSX:HBLK). Since its inception on February 7, the index has dipped 26.5 percent to close at C$8.15 on Thursday.

Meanwhile the Horizons Blockchain Technology & Hardware Index ETF has decreased by a slight 0.24 percent from its open of C$25.09 to close Thursday’s trading session at C$24.94.

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