Recently, an application has been submitted to the Shenzhen Stock Exchange (SZSE) for a Penghua SZSE Blockchain 50 Trading Open Index Securities Investment Fund. If it is approved, the fund will be the first blockchain trading investment fund in China.
This is coming in the light of the United States hesitating to approve any crypto-backed exchange-traded funds (ETFs) The application was accepted December 24 filed by Penghua Fund, an asset management company based in China's Shenzhen city.
Although it is currently not known when a response will come but the Chinese blockchain community is on the lookout.
The proposed ETF aims to track and reflect the performance of Shenzhen-listed public stocks that have businesses in the blockchain industry.
Based on a report from Shanghai Securities News, if the application received final approval by the CSRC it would be the country's first completely blockchain-themed ETF open to public investors.
An exchange-traded fund (ETF) is a type of security that involves a collection of securities such as stocks that often tracks an underlying index. ETFs are similar to mutual funds; however, they are listed on exchanges and the exchange-traded-fund shares trade throughout the day just like an ordinary stock. With lower fees, increased liquidity, and transparency of operations, the exchange-traded-fund offers individual investors the purchase of shares in the funds.
The fund is more than likely going to be a catalyst for the launch of similar products in the future, which will help the blockchain industry grow even more.
Recently, China continues to make huge strides in the blockchain space. On December 24, the Shenzhen Stock Exchange (SZSE) launched the SZSE Blockchain 50 Index. The Index uses companies in the Shenzhen Stock Exchange's listed companies whose business areas involve the upstream and downstream of the blockchain industry as a sample space, including hardware equipment, technology and services, and blockchain applications.
Currently, there are many blockchain-focused ETFs traded on U.S. stock markets. Funds include: Amplify Transformational Data Sharing ETF (NYSE: BLOK), Reality Shares Nasdaq NexGen Economy ETF (NASDAQ: BLCN), First Trust Indxx Innovative Transaction & Process ETF (NYSE: LEGR), Goldman Sachs Motif Finance Reimagined ETF (NYSE: GFIN), Reality Shares Nasdaq NexGen Economy China ETF (NYSE: BCNA), and Innovation Shares NextGen Protocol ETF (NYSE: KOIN).