Invesco mutual fund files for a global blockchain fund

The fund of fund will invest in a global blockchain exchange traded fund

Invesco Mutual Fund (MF) has filed for a global blockchain fund, which will give Indian investors exposure to global companies that earn their revenues by providing blockchain technology.

Invesco India – Invesco Elwood Global Blockchain Fund of Fund (FoF) will invest in Invesco Elwood Global Blockchain UCITS ETF, an exchange traded fund listed on global stock markets.

The ETF aims to mimic returns of Elwood Blockchain Global Equity Index, which consists of companies that make their earnings from blockchain technology.

Ajeet  Khurana, the founder  of Genezis Network, a group of investors that funds early stage crypto start-ups, says if these blockchain companies are seeing their value getting accrued into their equity shares and not tokens, then there is huge growth potential for these blockchain companies.

“We are seeing the rapid adoption of tokens, whether it is NFT or DeFi, which are based on blockchain technology. So, this could also benefit the companies that are offering these technologies,” Khurana says.

But, at the same time, Khurana says investors should not expect the same kind of astronomical returns that are being seen from trading in crypto currencies. “It is important investors know that the two are different,” he says.

Bitcoins and other crypto currencies also use blockchain technologies, which are decentralised ledgers that record the transactions.

To be sure, Indian mutual fund investors will only be able to invest in the fund, after SEBI gives approval to it.

Jash Kriplani is a journalist with over ten years of experience. Based in Mumbai. Covering mutual funds, personal finance. His last stint was with Business Standard, where he covered mutual funds and other developments in the financial markets