First Block Capital launches Distributed Ledger Technology ETF in Canada

Oct 17th, 2018 | By | Category: Equities

Vancouver-based First Block Capital, an investment manager focused on cryptocurrency and blockchain opportunities, has launched the FBC Distributed Ledger Technology Adopters ETF (FBCN CN) on Aequitas NEO Exchange.

Sean Clark, Co-Founder and CEO of First Block Capital

Sean Clark, Co-Founder and CEO of First Block Capital.

The actively managed fund will invest in a diversified global portfolio of equities from firms that are adopters of ‘distributed ledger technology’ (DLT), the precursor to blockchain.

A distributed ledger is essentially a network of computers that keep records secure in a decentralized database similar to a shared spreadsheet, that the network can see and must approve before it can be verified and recorded.

Once recorded, no one person can change it without the agreement of others and it is nearly impossible to tamper with.

DLT underpins so-called cryptocurrencies, like bitcoin, but it has many more possible uses with the potential to move data of any kind swiftly and securely. A growing number of industries and institutions are looking to embed DLT into their day-to-day processes.

First Block believes that distributed ledger technology (DLT), which includes blockchain technology, is a fundamental innovation that will transform global commerce and represents a foundational shift in the economy, one which has the potential to dramatically reduce the costs of transactions and streamline business processes, such as managing complex supply chains.

“Since launching First Block Capital’s Bitcoin Trust, our team has been exposing the investment community to blockchain investment opportunities,” said Sean Clark, Co-Founder and CEO of First Block Capital. “The FBC Distributed Ledger Technology Adopters ETF is an example of how we are expanding our suite of financial products to ensure investors have access to an asset class and investment opportunities they otherwise wouldn’t.”

The ETF will be managed by Bruce Campbell, of StoneCastle Investment Management, and may invest in equities from both developed and emerging markets.

The ETF may invest up to a quarter of its assets in equities of firms that are investing in and developing DLT, whether for their proprietary use or for use by others. Remaining fund assets will be invested in firms that use or supply DLT in their business operations. Such firms may use DLT to increase operational efficiencies, optimize settlement processes, enhance customer experience or increase data security, integrity or privacy.

Clark added, “We are proud to launch our first Canadian ETF, which will provide investors access to our exclusive expertise in the blockchain sector and exposure to opportunities related not only to digital innovators, but also the blue-chip companies that leverage their technology.”

FBCN comes with a management expense ratio (MER) of 0.65%.

This is the first ETF launched by First Block Capital, which becomes the eleventh ETF issuer to list products on NEO.

“Today, we welcome First Block Capital, a champion of innovation, again – this time to list their first ETF on our senior exchange,” said Jos Schmitt, President and CEO, NEO. “Like First Block, we are dedicated to uncovering new and unique ways to deliver value to our respective clients, and doing so in a bold and transparent manner. Their decision to choose NEO for their first ETF listing is a testament to how NEO has become an acknowledged listing venue in Canada, and our ability to provide our clients with an exceptional experience.”

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