Solactive launches Blockchain Technology & Hardware index

Ridhima Sharma
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Solactive has launched Solactive Blockchain Technology & Hardware index that mirrors the performance of global companies focusing directly on blockchain innovation and development, as well as companies providing hardware and hardware-related services used in the process of mining, an essential part in supporting blockchain technologies.

The index includes companies involved in both the software and hardware applications of the blockchain ecosystem. It is tracked by the Horizons Blockchain Technology & Hardware index ETF, which began trading today on the Toronto Stock Exchange under the ticker symbol ‘BKCH’.

Timo Pfeiffer, head of Research at Solactive, commented: “The Solactive Blockchain Technology & Hardware index focuses on the infrastructure around the technology, the ‘shovel providers’ during the gold rush, to use an analogy. We are happy that Horizons ETFs, one of the biggest players in the Canadian ETF market, has chosen Solactive to turn this theme into an investable solution.”

It takes a three-tiered approach by selecting one-third of its components from companies focusing on the development of blockchain technologies, one-third from the semiconductor industry, and one-third from industries that directly supply other relevant hardware or services important for large-scale mining on a commercial level (e.g. hosting, storage and data centres). Within each industry group, Index components are equally weighted. It is calculated as a net total return (NTR) index and is published in USD. The index is readjusted quarterly.

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