As Bitcoin Recovers, Another Blockchain ETF is in the Works

First Trust, one of the largest issuers of smart beta exchange traded funds, is among the ETF sponsors looking to introduce a blockchain ETF. In a filing with the Securities and Exchange Commission (SEC), First Trust revealed plans for the First Trust Indxx Blockchain ETF.

Blockchain technology was originally developed as an accounting method for bitcoin. The First Trust ETF will track the Indxx Global Blockchain Index.

The news of the filing comes as price of one Bitcoin recovered Wednesday, surpassing $7,000 after dipping below $6,000 twice in the last week.

“Blockchain is a type of distributed ledger, or decentralized database that keeps continuously updated digital records of who owns a particular asset (e.g., cryptocurrency, contracts, information, etc.). It is kept and validated simultaneously by a network of computers, similar to a shared spreadsheet that no one person can change without the agreement of the others,” according to the First Trust SEC filing. “A blockchain is comprised of unchangeable, digitally recorded data in packages called “blocks.” These digitally recorded blocks of data are stored in a linear “chain.” Each block in the chain contains data (e.g., a transaction), that is cryptographically connected to the previous-block in the chain, ensuring all data in the overall “blockchain” has not been tampered with and remains unchanged.”

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