Pioneer ETF Focused on Blockchain to Operate in China
An exchange-traded fund (ETF) recently sent an application to the China Securities Regulatory Commission. Penghua fund filed for the ETF proposal on the 24th of December, intending to monitor publicly listed stock performance from blockchain business.
The fund’s approval would make it the pioneer ETF targeted on blockchain in China. The news was highlighted on the 26th of December by SSJ, a Chinese government journal.
Many Blockchain Industries Get Listed on Blockchain 50 Index
The Shenzhen Stock Exchange also announced its blockchain 50 index, with 50 leading companies listed on the stock exchange index. Some of these companies include Ping An Bank, Midea Group, and Zixin Pharmaceuticals.
The news released by SSJ reveals that there are specializations in the crypto industry, including hardware development, technology and services, and blockchain applications. Many crypto analysts believe that approval of Penghua’s ETF application will encourage other asset managers to do so.
If ETF’s sector develops, investors may get investment channels as a means to earn dividends. In an interview with SSJ, Dong Weiwei pointed out that blockchain got the potential for the innovation of digital finance, the internet of things technology, intelligent manufacturing, supply chain management, digital assets, and more.
Restrictions on Cryptocurrencies
There are reports that the US SEC is deferring its rulings on some ETF proposals that focus on cryptos. On the other hand, China’s government is taking stiff measures against cryptocurrencies, despite its support for blockchain technology.
This year, China’s president endorsed blockchain technology for the country’s development. Additionally, the Central Bank of China is even planning on introducing a central bank digital currency (CBDC). China’s Central Bank emphasized the difference between digital Yuan, Bitcoin, Stablecoins, and private digital assets.