Horizons has become the latest firm to file for a blockchain fund. The Horizons Blockchain ETF will track an in-house index.
Blockchain is a sort of tamper-proof digital ledger. The fund’s underlying index will target companies at the global level that are involved with the use and development of blockchain technology and likely to benefit from its growth.
The prospectus notes that the index draws its components from more than 20 industries, selecting them based on a multifactor model that targets companies based on relative strength and expected outperformance.
Companies eligible for inclusion have a minimum market capitalization of $250 million and a trailing six-month average daily dollar volume of $1 million. The fund’s methodology relies on a proprietary weighting approach that is based on relevancy, liquidity and growth profile, and the prospectus notes that designed to offer “diversification without dilution.”
First Trust and Reality Shares have also filed for ETFs that focus on blockchain technology, but the First Trust fund will be actively managed.
The Horizons fund is slated to list on the Cboe exchange; however, the filing did not provide an expense ratio or ticker.
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