Skip to main content

A new blockchain ETF will begin trading Thursday on the Toronto Stock Exchange, offering exposure to the infrastructure behind the disruptive technology.

The Horizons Blockchain Technology and Hardware Index ETF joins similar exchange-traded funds from Harvest Portfolio Group Inc. and Evolve Funds Group Inc., both of which have lost more than 20 per cent since they launched this year. The Horizons fund will differentiate itself by focusing on hardware and services, said Steve Hawkins, co-chief executive officer of Horizons ETFs Management Canada Inc.

The ETF’s holdings include companies developing blockchain-related applications, like Hive Blockchain Technologies Ltd., semiconductor firms like Nvidia Corp., and service providers like Digital Realty Trust Inc.

Story continues below advertisement

“We don’t know which individual blockchain companies are going to work, we have no idea what the extent of the blockchain applications will be, but we do know people will have to invest in the infrastructure to build out blockchain,” Hawkins said in a phone interview. “It’s going to be these ancillary services to the blockchain technology where the winners are going to be at the end of the day.”

The ETF, using the symbol BKCH, is based on the Solactive Blockchain Technology and Hardware Index, which also includes major players like Intel Corp., Advanced Micro Devices Inc. and Micron Technology Inc.

“We don’t want to be investing in a $20 million market cap company at this stage, there’s just way too much risk to that,” Hawkins said. “Investors need to be investing in the well-established global infrastructure to blockchain, not necessarily taking risks on the startup blockchain development companies.”

The Blockchain Technologies ETF from Harvest Portfolios has lost 25 per cent since it began trading in February, while the actively managed Evolve Blockchain ETF has fallen 20 per cent since March 6.

Report an error
Comments

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • All comments will be reviewed by one or more moderators before being posted to the site. This should only take a few moments.
  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed. Commenters who repeatedly violate community guidelines may be suspended, causing them to temporarily lose their ability to engage with comments.

Read our community guidelines here

Discussion loading ...

Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.
Cannabis pro newsletter