‘Pioneer’ Blockchain ETF Filed With Chinese Regulator
Penghua Fund filed the ETF proposal on December 24 and the purpose is to monitor the performance of publicly-listed stocks from blockchain businesses.
Its approval would make it the pioneer ETF based on blockchain in China, as highlighted in a news release on December 26 by Shanghai Securities Journal (SSJ). SSJ is run by the government of China.
The Shenzhen Stock Exchange likewise announced its “Blockchain 50 Index” the day Penghua Fund applied for the ETF. There are 50 leading blockchain companies listed on the stock exchange in the index. The list is based on market cap and some of the companies on it include Ping An Bank, Midea Group and Zixin Pharmaceutical.
According to SSJ, the companies in the new index are a reflection of some specializations in the industry. The specializations are hardware development, technology and services, and blockchain applications. Analysts think that the approval of Penghua’s ETF application will prompt other asset managers to apply for the same, says SSJ.
Since ETFs reflect various assets, they may offer investors a convenient investment channel and provide the means to earn dividends as the development of the sector continues.
In an interview with SSI, Dong Weiwei of Everbright Prudential Fund Manager maintained that blockchain possesses a wide potential that cuts across industries. He mentioned its potential for the innovation of digital finance, Internet of Things technology, intelligent manufacturing, supply chain management, digital assets, and more.
Reports have it that the U.S. SEC has been deferring its rulings on some ETF proposals that focus on cryptos.
The government of China keeps on taking stiff measures against cryptos despite its support for blockchain technology. This year, the president of China endorsed blockchain technology for the country’s development.
The central bank of China is planning to introduce a central bank digital currency. The central bank has emphasized the difference between the digital Yuan and Bitcoin, stablecoins, as well as other private digital assets.
Featured image courtesy of Shutterstock. Source: Cryptopress.