Cryptocurrency trading platform Coinsquare is moving into the exchange-traded fund business as its investment-management division launches two new technology funds.
Coin Capital Investment Management Inc., a portfolio-management subsidiary established in July, has become the 30th ETF provider in Canada with the launch of two ETFs focused on global emerging technologies. With a management fee of 0.64 per cent, the Coincapital STOXX Blockchain Patents Innovation Index Fund (LDGR) and the Coincapital STOXX B.R.AI.N. Index Fund (THNK) began trading on Thursday morning on the Toronto Stock Exchange.
“Canadians know technologies like AI and the blockchain are going to change the way we live and work, but it can be difficult to access high-quality investments in these sectors without deep domain expertise,” Coin Capital chief executive Lewis Bateman said.
Blockchain is an online digital ledger. Once a transaction is completed, it goes into a blockchain database and is kept as a permanent, secure record. It is most commonly known as the technology behind the booming cryptocurrency bitcoin, which soared above US$18,000 last December.
LDGR will aim to provide investors with access to global equity securities of companies that are investing in the research and development of blockchain technologies. It is based on the iSTOXX Yewno Developed Markets Blockchain Index. Top holdings of the index include Mastercard Inc., Johnson Controls PLC and Royal Bank of Canada.
The second fund, THNK, will invest in global equity securities of companies that work in the “B.R.AI.N sectors” – biotechnology, robotics, artificial intelligence and nanotechnology – and is based on the iSTOXX Developed Markets B.R.AI.N Index. Its top holdings include Nvidia Corp., Intel Corp. and Facebook.
Blockchain technology caught the eye of several ETF providers this year. In January, Harvest Portfolios was the first firm to introduce an ETF that tracks the technology with the Blockchain Technologies ETF (HBLK).
Other funds to launch this year include First Trust Indxx Innovative Transaction & Process ETF (BLCK), Evolve Blockchain ETF (LINK) and Horizons Blockchain Technology & Hardware Index ETF (BKCH).