Kleinwort Hambros, a Societe Generale-owned private bank and wealth manager, has launched an actively managed exchange-traded note (ETN) targeting the blockchain sector.
Blockchain Technology has been termed as the technology of the future. The technology has spread its wings from medical to space industry and many more. The banking sector has been influenced by the revolutionary technology.
Most recently a London-based bank announced the news this week, saying its Luxembourg-listed ETN will invest in companies that would “profit most” from the development and increasing uptake of blockchain technology. ETNs are unsecured debt securities that, like exchange-traded funds (ETFs), are traded on a stock exchange.
Kleinwort Hambros is owned by Societe Generale, acting as their private wealth management division in the United Kingdom. Societe Generale itself is a multinational investment bank headquartered in Paris, with total assets of around 1.3 trillion euros ($1.4 trillion) in 2018.
The blockchain note will initially have 20 stocks diversified across areas including technology, shipping, oil and gas, custody and industrials.
Kleinwort Hambros’ portfolio manager John Birdwood said:
“We have seen increasing interest from clients in the area of blockchain and we are very excited to be able to cater to this demand with the launch of our first blockchain note.”
The product is expected to provide its clients with the “diversified exposure to the promising growth prospects blockchain technology offers while maintaining the rigorous active management,” Birdwood added.
It’s worth noting that the ETN will be only available for Kleinwort Hambros’s existing and new clients, with a minimum investment of £1,000 ($1,305).
The centuries-old bank has assets under management of £14.2 billion ($18.52 billion) and over 900 employees as of last year, according to its own figures.
In similar news, investment management company Invesco and Elwood Asset Management jointly launched a blockchain exchange-traded fund (ETF) on the London Stock Exchange last month.
The crypto community’s ongoing wait for a bitcoin ETF, however, is still awaiting a decision from the Securities and Exchange Commission in the U.S. However, several exchange-traded products (ETPs) for Bitcoin and other cryptos have gone live for trading in Europe.
In related news, investment management company Invesco and Elwood Asset Management jointly launched a blockchain exchange-traded fund (ETF) on the London Stock Exchange last month.
The crypto community’s ongoing wait for a bitcoin ETF, however, is still awaiting a decision from the Securities and Exchange Commission in the U.S. However, several exchange-traded products (ETPs) for Bitcoin and other cryptos have gone live for trading in Europe.
What are your views about blockchain technology and the banking sector? Let us know in the comments section.
