Horizon sets sights on blockchain
Exchange-traded fund (ETF) provider Horizon ETFs Management is the latest to join the bitcoin / blockchain bonanza, with plans for the Horizons Blockchain ETF, according to a Securities and Exchange Commission (SEC) filing.
The fund, which aims to track the Horizons Blockchain index, will identify companies globally that stand to directly participate in the growth associated with the adoption and integration of blockchain technology.
It will be managed by Garrett Paolella, Troy Cates and Jonathan Molchan.
Although many asset managers have hatched plans to tap into the potential of cryptocurrencies and the underlying blockchain technology in the ETF wrapper, bitcoin ETFs have so far had a mixed history.
In March, the SEC rejected an application from Tyler and Cameron Winklevoss, the twin brothers famous for their dispute with Facebook founder Mark Zuckerberg, to let the Winklevoss Bitcoin Trust trade on the Bats exchange.
The agency rejected the fund on the grounds that the exchange would be unable to enter into necessary surveillance-sharing agreements given that bitcoin is not regulated by any government.
Bitcoin plummeted as much as 18% immediately after the SEC rejected the Winklevoss twins’ ETF proposal.
However, the tide seems to have turned a bit recently as the world’s largest exchange group, the CME Group announced in late October plans to launch a futures contract based on bitcoin as soon as the second week of December.
Bitcoin has had an incredible run in 2017 so far, having surged more than 735% this year alone and now trading at a record high above $9,000 apiece.
PowerShares rides rising rates
PowerShares, the ETF arm of asset manager Invesco, is to launch the PowerShares S&P 500 Rising Rates portfolio, according to a SEC filing.
The fund will track the S&P 500 Rising Rates index, which reweights each security in the S&P 500 index using a rules-based methodology designed to give greater weight to securities that have relatively higher ‘positive sensitivity’ to interest rates.
The index then weights each security in the S&P 500 index proportionately according to its interest rate sensitivity so that stocks with relatively higher positive sensitivity to interest rates constitute a greater percentage, whereas stocks with relatively higher negative sensitivity to interest rates are relatively underweight.
The fund will be managed by Peter Hubbard, Michael Jeanette, Jonathan Nixon and Tony Seisser.
Oppenheimer eyes income generation
Oppenheimer is to launch the Oppenheimer Preferred Securities and Income fund, according to a SEC filing.
The fund, which invests mainly in preferred and other income producing securities including traditional preferred securities, hybrid preferred securities that have investment and economic characteristics of both preferred stock and debt securities, floating rate preferred securities, corporate debt securities, convertible securities, and contingent capital securities, will be managed by Helena Lee.
Lee also serves as a senior analyst on the investment grade debt team of the firm. Previously, she worked at Citi Investment Research as an equity research associate. Prior to that, she was a mid-cap bank analyst at Bank of America and an associate equity research analyst of large-cap banks at Prudential.