ETF Securities has launched a new fund focused on providing exposure to global financial technology and blockchain companies.
The ETF Securities Fintech & Blockchain ETF has commenced trading on Chi-X under the ticker code FTEC and is described as a “first-of-its-kind product” in the Australian market.
According to the fund provider, FTEC will provide access to a range of disruptive fintech companies and innovators in the blockchain space while acting as a hedge against disruption to traditional banks.
“This new product is set to be a real game changer for the industry, addressing the market’s unmet need for access to the next wave of financial market innovation,” said Evan Metcalf, head of product at ETF Securities.
“Recently, we have seen investors shift their focus to the technology underpinning these innovations, and we’re pleased to be able to partner with Chi-X to make exposure to decentralised finance, digital payments and other fintech categories, accessible for investors.”
FTEC will track the performance of the Indxx Developed Markets Fintech & DeFi Index, which is made up of companies that have a significant exposure to one of five major sub-themes including a cashless society, blockchain adoption, online wealth platforms, alternative credit and cloud-based financial software.
“We are excited to be launching FTEC to give more investors access to the world’s most innovative fintechs and companies forging new paths with technology, such as blockchain,” said Chi-X Australia CEO Vic Jokovic.
“As an emerging fintech company ourselves, Chi-X Australia has consistently delivered innovation to the local Australian market via best-in-class technology and customer service. With Chi-X now part of Cboe Global Markets, we look forward to continuing our track record in fintech innovation by leveraging Cboe’s global resources in products and services, for the benefit of the Australian market,” Mr Jokovic said.
The launch of FTEC follows the announcement of a new crypto stock ETF from BetaShares that is set to launch in the coming weeks. Data from ASX and Vanguard indicates that the local ETF industry has now surpassed $129 million in assets under management after record growth in the third quarter.
