In a recent announcement, it has been revealed that Invesco Mutual Fund has filed papers with the Securities and Exchange Board of India to launch Invesco Elwood Global Blockchain Exchange Traded Fund (ETF). With this mutual fund, investors would get a chance to invest in a global product that bets on the companies involved in blockchain technology.
The investment world of the fund includes public global companies in developed and emerging markets that invest across the whole blockchain ecosystem.
Talking about blockchain technology, it is a network that allows companies and people to maintain and transfer information and data instantly.
Blockchain can be considered the technology that allows the existence of cryptocurrency and is utilized in areas such as technical operations, financial services, crypto mining hardware, financial services, and payment systems.
It should be noted that over the last year, Invesco Elwood Global Blockchain ETF has provided returns of 82% with an underlying expense ratio of 65bps.
Along with this, the managers of the fund said that the company would be able to generate more returns in the coming years.
Just like a normal mutual fund, that invests in stocks listed on the stock exchanges, a blockchain ETF fund, as the name suggests, will be investing in blockchain-based projects and cryptocurrencies.
The benefit of investing in a mutual fund is that the risk of direct exposure and fluctuations of cryptocurrencies is eliminated and your fund is managed by experts in the industry.
As revealed by the Invesco India Mutual Fund, crypto-based companies have the potential to generate higher returns in the coming years as crypto adoption is expected to grow and blockchain business will increase with technological advancements and constantly emerging use cases of blockchain.