Harvest announces final filing of the prospectus for Canada's first blockchain ETF

The Ontario Securities Commission has approved Canada's first blockchain exchange-traded fund (ETF), which is set to launch on the Toronto Stock Exchange next week

Marcus Zallman
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Harvest Portfolios Group announced that a final prospectus has been filed with the Canadian securities regulators for Canada's first blockchain ETF, Blockchain Technologies ETF. This innovative ETF is designed to provide Canadian investors access to the developing blockchain technology sector. Upon fulfilling all the listing requirements, HBLK will be listed on the Toronto Stock Exchange.

HBLK seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of the Harvest Blockchain Technologies Index.

The fund will invest "in equity securities of issuers exposed, directly or indirectly to the development and implementation of blockchain and distributed ledger technologies," a Harvest Portfolios statement said. The company intends for the ETF to track blockchain technology projects, mirroring its Harvest Blockchain Technologies Index.

Harvest, a registered investment fund manager and portfolio manager, will act as promoter, trustee, manager and portfolio manager of HBLK and will be responsible for the administration of HBLK.

Meanwhile, two other notable providers are also looking to access blockchain technology: This week both First Trust Portfolios Canada and Evolve Funds Group Inc. have filed with regulators for blockchain funds.

The approval is good news for two other firms, First Trust Portfolios Canada and Evolve Funds Group Inc., who have already filed for similar ETFs. First Trust’s ETF manager Karl Cheong said that “every conversation with clients inevitably” leads to questions regarding Bitcoin and Blockchain investments.

The concept of blockchain is very attractive to investors right now, and while the idea is still relatively new, research shows that this is a technology that could potentially save billions of dollars in cost. “Blockchain technology is poised to disrupt virtually every business and industry, including financial services, real estate, healthcare, and government,” said Raj Lala, president and chief executive officer of Evolve in a statement.