Benzinga | Oct 7, 2021 08:21AM EDT

Invesco Launches Digital Assets And Blockchain Thematic Equity ETFs In The U.S.

Invesco Ltd. (NYSE:IVZ), a leading global asset management firm, today announced the launch of two passively managed exchange-traded funds (ETFs) focused on digital assets and blockchain. The Invesco Alerian Galaxy Crypto Economy ETF (SATO) and the Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF (BLKC) will offer thematic equity exposure to global public companies and select investment vehicles that are actively engaged in the cryptocurrency and blockchain sectors.



Beginning today at 9:30am ET the following new ETFs will list on Cboe Global Markets:

* Invesco Alerian Galaxy Crypto Economy ETF (SATO)

* Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF (BLKC)

"Today's launch opens up a new way for investors to access this fast-growing asset class, combining exposure to key companies in the cryptocurrency and blockchain ecosystem with an allocation to an investment vehicle that directly holds digital assets, all within the ETF wrapper," said John Hoffman, Head of Americas, ETFs & Indexed Strategies at Invesco. "The combined, broad expertise Alerian and Galaxy bring to these Invesco ETFs is a unique advantage and we are excited to align with both firms on a combined long-term vision around the potential digital assets and blockchain can bring to clients' investment outcomes."

The Invesco Alerian Galaxy Crypto Economy ETF (SATO) will aim to track the Alerian Galaxy Global Cryptocurrency-Focused Blockchain Equity, Trusts & ETPs Index and provide exposure to companies participating in both the cryptocurrency and blockchain space, including businesses such as cryptocurrency miners, cryptocurrency infrastructure technologies and cryptocurrency buyers. The Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF (BLKC) will aim to track the Alerian Galaxy Global Blockchain Equity, Trusts & ETPs Index and offer access to the same companies as SATO as well as a segment of companies that are engaged in the research and development of blockchain technology not tied to cryptocurrency.

In addition, both ETFs will maintain an allocation to an investment vehicle that directly holds physical cryptocurrency. This is the largest such dedicated holding currently available in an ETF in the U.S.

The underlying indexes represent a partnership of Alerian S-Network Global Indexes, a pioneering index provider focused on building innovative, index-based investment strategies and Galaxy Digital Holdings Ltd. (TSX:GLXY), a leading financial services and investment management innovator in the digital assets, cryptocurrency and blockchain technology sectors.

The indexes combine both firms' expertise to build benchmarks with first-of-a-kind access to the cryptocurrency and blockchain ecosystem. Both Alerian Galaxy Indexes are passive, rules-based, transparent, and rebalance monthly.

"Alerian is proud to continue its track record of index innovation and partnering with industry leading firms like Invesco and Galaxy to deliver thoughtfully designed solutions to meet investor demand," said Robert Hughes, Chief Commercial Officer of Alerian S-Network Global Indexes. "Our underlying indexes were thoughtfully constructed through research and comprehensive analysis to provide unique access to the ever-growing blockchain and cryptocurrency universe."

"Today marks an exciting milestone as we unlock another way for retail and institutional investors to get involved in the rapidly evolving and transformative world of digital assets," said Steve Kurz, Partner and Head of Asset Management at Galaxy Digital. "We look forward to our continued partnership with Invesco, a leader in ETFs, and Alerian, a leader in index-based investment strategies, as we continue bridging the gap between traditional and digital finance."