Institutionally Supported Blockchain Investment Opportunities Broaden in Canada
Canadian companies are developing new options for traditional investors to access digital currency and blockchain investments without the perceived greater risk of direct purchasing.
The availability of blockchain-based ETFs is increasing, and institutional investment companies are diversifying into digital assets and blockchain businesses.
Goldmoney – protecting digital assets with traditional infrastructure
Toronto-based Goldmoney offers investors a way to invest in, buy, and store physical gold and silver bullion both online and at its branch locations.
Goldmoney recently announced a partnership with Malbex Resources Inc. a merchant bank, and digital currency and blockchain investment provider also based in Toronto.
The collaboration will see Goldmoney facilitating the purchasing and sales of digital currencies. BlockVault Inc, Goldmoney’s subsidiary, will act as a custodian for Malbex’s digital asset holdings. Malbex will be renaming to COIN Hodl Inc and is already listed on the Toronto Stock Exchange (TSX) under the ticker COIN.
Goldmoney’s BlockVault offers secure, physical storage for the cold storage of digital assets with a focus on higher net wealth investors (HNWI).
Malbex/COIN is one of the first digital currency businesses to have a listing on a major exchange and, Goldmoney believes, is the first that will have fully-transparent, third-party insurance and auditing on its digital currency portfolio. Insurance and auditing that will be provided by the partnership with BlockVault.
“Our relationship with COIN is an exciting first example of the types of markets we can open up with BlockVault’s institutional cold-storage technology, allowing institutional investors exposure to this new asset class while ensuring the private keys for their underlying assets are securely stored in safe custody and insured.” said Josh Crumb, Goldmoney CSO and founder of BlockVault,
Goldmoney already holds nearly $2 billion CAD dollars of traditional gold and silver assets for clients in 150 countries.
Horizons – blockchain hardware and services ETF
A second development this week of interest to institutional investors who may still be afraid to invest directly into digital currencies is the launch of the Horizons blockchain exchange traded fund (ETF).
The new fund began trading on June 21st, 2018, on the Toronto Stock Exchange and invests in blockchain technology companies. Horizons has holdings in Hive Blockchain, Nvidia, Intel and Advanced Micro Devices.
The Horizons Blockchain Technology Hardware Index ETF aims to differentiate itself from other recent blockchain ETF launches by focusing on hardware and services.
“We don’t know which individual blockchain companies are going to work, we have no idea what the extent of the blockchain applications will be, but we do know people will have to invest in the infrastructure to build out blockchain,” said Steve Hawkins, Co-Chief Executive of Horizons ETFs Management Canada Inc to Bloomberg “It’s going to be these ancillary services to the blockchain technology where the winners are going to be at the end of the day.”
Blockchain investment opportunities
Other blockchain-based ETFs from Harvest Portfolio Group and Evolve Funds Group have seen losses of more than 20% since they launched earlier this year.
Despite a tightening of the total market capitalization for digital currencies, related investment products and opportunities are still rising, provide new opportunities for investors to assess.
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