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ETF Securities taps into fintech, blockchain

The exchange traded fund (ETF) provider launched a fund which not only gives investors access to a portfolio of blockchain and fintech stocks, but is also the first passive ETF on the Chi-X.

The ETFS Fintech & Blockchain ETF (FTEC) invests in a portfolio of 75 developed market stocks and reflect sub-themes such as decentralised finance, digital payments and point of sale, payments processing, finance and tax software, trading and capital markets and crowdfunding.

The key theme in FTEC is blockchain technology with 20 of the 75 stocks blockchain companies. Some of the companies in the portfolio include Visa, PayPal, Square, Zero, Black Knight.

"This is an exciting growth period for the ETF sector in Australia as investors look for varied exposures to investment megatrends, led clearly by the innovation in technology sector. We have seen a lot of fintech disruption already in the form of digital wallets, robo-advice, instant international money transfers and free share trading," ETF Securities head of distribution Kanish Chugh said.

"With blockchain adoption looming, the world steadily turning cashless and the global payments infrastructure becoming standardised, there is much disruption to come."

FTEC tracks the Indxx Developed Markets Fintech and DeFi Index which includes companies that aim to reshape the finance industry in blockchain adoption, a cashless society, online wealth platforms, alternative credit and cloud-based financial software.

The ETF is available to investors on Chi-X Australia and also marks the launch of the first passive ETF on the alternative exchange.

"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," Chi-X chief executive 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."

It comes after research from global cryptocurrency platform Luno found 15% of all Australians invested in crypto in the last two years.

Read more: FTECChi-X AustraliaETF SecuritiesDeFi IndexKanish Chugh