Kleinwort Hambros Introduces Blockchain Exchange Note


Kleinwort Hambros, a private bank and wealth manager owned by Societe Generale, has introduced an actively managed exchange-traded note (ETN) intended for the blockchain sector.

The bank, which is based in London, revealed the news on April 8, stating that its Luxembourg-listed ETN will invest in firms that could “profit most” from the growth of blockchain technology. Similar to exchange-traded funds (ETFs), ETNs are unsecured debt securities that are traded on a stock exchange.

Initially, the blockchain note will have 20 stocks diversified across areas like shipping, technology, custody, oil and gas, and industrials.

John Birdwood, portfolio manager of Kleinworth Hambros, stated:

“We have seen increasing interest from clients in the area of blockchain and we are very excited to be able to cater to this demand with the launch of our first blockchain note.”

According to Birdwood, the product will offer its customers with the “diversified exposure to the promising growth prospects blockchain technology offers, while maintaining the rigorous active management.”

However, only Kleinwort Hambros’s present and new clients with a minimum investment of £1,000 ($1,305) are eligible to access the ETN.

The bank, which is centuries old, has more than 900 employees as of last year and has assets under management of £14.2 billion ($18.52 billion).

On the other hand, investment management company Invesco and Elwood Asset Management have collaborated to introduce a blockchain exchange-traded fund (ETF) on the London Stock Exchange in March.

The most-awaited bitcoin ETF, however, is still waiting for the U.S. SEC’s decision. Meanwhile, several exchange-traded products (ETFs) for bitcoin and other cryptocurrencies have gone live for trading in Europe.