There has been an official request in China to launch a new ETF based on blockchain assets.
It is the so-called Penghua Shenzhen Stocks Blockchain, given that the application to the China Securities Regulatory Commission (CSRC) was submitted by the Penghua Fund of Shenzhen.
The application has been accepted, and if this ETF were to be approved it would be the first-ever in China dedicated to blockchain. It will be open to all investors and will presumably be placed on the Shenzhen Stock Exchange, which recently launched a “Blockchain Index” (Shenzhen Stock Exchange Blockchain 50 Index) consisting of the 50 publicly traded securities with the highest market capitalisation among those of companies that are involved in different aspects of the blockchain ecosystem.
The ETF on blockchain assets, called “Penghua SZSE Blockchain 50 Trading Open Index“, aims to track and reflect the performance of the 50 public securities listed on the Shenzhen Stock Exchange that have blockchain operations.
The objective is to provide investors with a new way to speculate on the dividends from the development of the blockchain industry.
The Blockchain 50 Index was issued on the Shenzhen Stock Exchange on December 24th and closed the next day with a 1.74% increase, reaching 3,155.03 points.
This index is based on securities listed in Shenzhen whose business areas are involved in different ways in the blockchain industry, such as mining hardware equipment or services and applications that use this technology, covering companies such as Ping An Bank, Midea Group, Zixin Pharmaceutical, Guangdian Express, SF Holdings, Suning Tesco, etc…
In addition, many of these companies have already doubled their market capitalisation during 2019, including for example Jinyi, which increased by more than 310%, or Tonghuashun, which increased by 178%.
The average growth rate of these 50 companies reached 50% in 2019, much higher than the average performance of the Shanghai stock index.