Invesco Asset Management movements exhibit similarity with movements in the price of bitcoin, the world’s largest cryptocurrency by market cap.
According to Invesco Asset Management’s presentation, the underlying fund, Invesco CoinShares Global Blockchain UCITS ETF, aims to achieve the performance of the CoinShares Blockchain Global Equity Index.
The review document further adds, “During the quarter ended October 2021, the CoinShares Blockchain Global Equity Index generated a total return of 12.9%, in comparison to the MSCI World Net Total Return Index, which generated a total return of 3.8%.
Since inception, the ETF has delivered 238% in absolute terms compared to the 1,572% return delivered by bitcoin.
When bitcoin nearly halved from around $60,000 to $30,000-odd levels from March to June 2021, the fund took a hit of just about 20%.
According to the fund’s presentation, its one-year standard deviation is 31.1% compared to 11.1% for the MSCI World Index.
The Invesco ETF has a mix of crypto-related stocks and companies that are in the broader tech space.
The Invesco India presentation points to the increasing adoption of blockchain tech in the world, including India.
The healthcare sector is also adopting blockchain, it says.
However, for investors who are curious about this space, this may be a conservative way to take a small exposure to the crypto space.