First China-Based Blockchain ETF Awaits Regulatory Approval

China Blockchain ETF

Penghua Fund, an asset management firm based in the Guangdong province of China, has filed an application to list a blockchain-centered exchange traded fund (ETF) in China.

Shanghai Securities News reported that if the application is approved, which is currently under review by China Securities Regulatory Commission, this would mark the exchange traded fund as the first one of its kind in the country that is solely focused on blockchain.

The application by Pengua Fund, which currently holds over $80 billion in clients’ assets, is under consideration according to a statement posted on the website of CSRC, the official financial watchdogs of the country. The approval of the company’s ETF, presently called the Penghua Shenzhen Stocks Blockchain ETF, will be a huge step for the future of blockchain technology in China.

With its headquarters located in the city of Shenzhen in China, Penghua manages 159 public funds, 10 national social insurance investment portfolios, 4 basic pension insurance investment portfolios; all of which adds up to the amount of 564 billion yuan, or almost $80 billion. The details of the funds and portfolios have been listed on the official website of the asset management company.

China’s Blockchain 50 Index

Shenzen Stock Exchange released an index of the top 50 companies related to blockchain technology including their stocks that were categorized by market capitalization of each individual company. The index was launched last week and was titled Blockchain 50 Index.

The index contains information and lists companies from a varying range of sectors. The list also includes Ping An Bank, a Chinese joint-stock commercial bank based in Shenzhen which and Wholeasy, an internet firm that made the terrible mistake of investing almost $80 million in Bitcoin miners in 2018.

Although China is a relatively new to the sphere of exchange traded funds based on blockchain, presently across the world there are seven active blockchain and crypto ETFs operating. If Penghua Fund receives the approval for its application submitted to the China Securities Regulatory Commission, it could be another big player in the market, making the sum of active blockchai-based ETFs eight in total.

The crypto news publication The Block was able to analyze the performance of the exchange traded funds listed back in May, which also included Invesco-Elwood’s fund that is listed on the London Stock Exchange, and found out that the value for them has sharply increased during the first half of this year.

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