Earlier this week Citywire reported the ETC Group and white-label issuer HANetf had announced the continuation of their partnership with the introduction of the ETC Group Digital Assets & Blockchain Equity UCITS ETF, which provides exposure to companies that have business operations in the field of blockchain technologies including:
- cryptocurrency mining,
- blockchain technology,
- or cryptocurrency trading and exchanges.
Launching ETC Group Digital Assets & Blockchain Equity UCITS ETF – KOIN further expands our range of innovative ETFs and ETCs on the HANetf platform. Investors are increasingly looking for alternative ways to access both underlying crypto markets and the blockchain technology underpinning this high growth industry, and they can do this both through ETC products such as BTCetc – ETC Group Physical Bitcoin ETC and now through KOIN ETF. This is similar to the way investors access gold through both investing in the commodity directly and also through and gold mining companies or gold miner ETFs.Hector McNeil co-Founder and co-CEO at HANetf said.
What are the reasons to buy the KOIN ETF?
1. KOIN focuses pre-dominantly on companies that generate a significant portion of their revenues from the blockchain industry including cryptocurrency mining, blockchain technology, or cryptocurrency custody, trading, and exchanges, offering great exposure to the industry.
2. According to PWC, Blockchain is said to have the potential to add over $1.76 trillion to the global economy by 2030 and is already experiencing rapid growth worldwide in banking and financial services.
3. KOIN provides investors with exposure to listed companies involved in the digital assets and blockchain industries which could be considered as an alternative to investing in digital assets and crypto currencies directly.
The KOIN ETF was launched on 15/11/2021 and tracks the Solactive ETC Group Digital Assets and Blockchain Equity Index NTR. The ETF holds 30 underlying equities and rebalances on a quarterly basis.
On the companies concentration level, it is worth noting the following:
- the top 2 holdings make up 23 percent of the fund,
- the top 4 holdings make up 37 percent of the fund,
- the top 7 holdings make up 52 percent of the fund,
- the top 10 holdings make up 64 percent of the fund.
The fund cannot be considered as diversified and investors should pay attention definitely to the top 2 holdings that consist nearly a quarter of the total KOIN ETF portfolio.
In terms of the geographic split the fund allocates 63 percent to the U.S. If we add Canada on top of the U.S. we get a 77 percent allocation of the North America.
With regards of the ETF structure, the fund offers physical replication, is UCITS compliant and domiciled in Ireland. It comes with the total expense ratio of 60 bps. Its based currency is the USD. The total AUM of the fund was approx. $922k as of 18/11/2021.