$80 Billion Asset Management Firm Files First Blockchain ETF With China’s Security Watchdog CSRC

The China Securities Regulatory Commission (CSRC) has received an exchange-traded fund (ETF) listing application for a project that tracks blockchain-based stocks as underlying assets.

Called the Penghua Shenzhen Stocks Blockchain ETF, the application was accepted on December 24 by the CSRC and was filed by the Shenzhen headquartered asset management company Penghua Fund. What the ETF is trying to do is track and reflect how public stocks listed in Shenzhen and having businesses running in the blockchain industry are performing.

The First Blockchain ETF in China

According to a Thursday Shanghai Securities News report, if the CSRC gives final approval for the application, China would have its very first blockchain ETF for public investors. The Penghua Shenzhen Stocks Blockchain ETF arrived at the same time with Shenzhen Stock Exchange rolling out a Blockchain 50 Index compromising of 50 stocks that are new in the blockchain space and listed on the exchange.

Ping An Bank, One of the Names on the Blockchain 50 Index List

In a December 24 announcement, Shenzhen Stock Exchange said the Blockchain 50 Index tracks companies involved with the blockchain ecosystem and selects the top 50 according to their market capitalization. Ping An Bank, together with software or internet companies that have entered crypto mining, like Wholeasy, are on the index list at the moment. Other big names include Zixin Pharmaceuticals and Midea Group, as the firms in the index reflect a wide cross-section of industries and have many specializations.

7 ETFs Currently Operating in the World

Penghua manages more than 564 billion yuan, which is approximately $80.79, in assets. It holds 10 investment portfolios for national social insurance, 150 public funds and 4 investment portfolios for basic pension insurance. If its blockchain ETF application gets approved, the company will join the list of 7 other blockchain ETFs and will be next to Invesco-Elwood’s fund, which is listed on the London Stock Exchange. A June analyze of ETFs’ performance this year noticed their value surged very rapidly from January to May.

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Author: Oana Ularu

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