For some time, the blockchain has no longer simply been a mega-trend for the tech-loving generation of millennials - it now has the stock market under its spell, too. And investors are feverishly searching for companies able to turn profits from this highly promising technology. There’s plenty of choice out there! As a result, financial returns can be achieved in the sector through various business models. These include hardware providers like Northern Data, for example. The German company offers modular high-tech data centres which can be installed in the smallest of spaces, at extremely high density. The high-performance computers can be used in all trending sectors, such as bitcoin mining, blockchain and artificial intelligence. The heart of the necessary high computing power, in turn, comes from chip suppliers such as AMD, Intel and Nvidia. The highly innovative Nvidia, for instance, is now offering special “cryptocurrency mining” processors for mining the second most important cybercurrency, Ethereum, alongside its regular GeForce graphics cards.
Speaking of mining, in this era of climate change it is increasingly attracting criticism given the high electricity consumption involved. That said, the companies are already working on solutions. For instance, US payment service Square recently announced that, together with the blockchain technology provider Blockstream Mining, it is setting up a solar-powered Bitcoin mining plant. Square is also one of the most prominent supporters of Bitcoin and has already invested USDmn 220 directly in the cryptocurrency. When it comes to “clean energy”, the Canadian Hive Blockchain Technologies is amongst the trailblazers. According to its own information, the company is the only public crypto-mining company producing Ethereum on an industrial scale using green electricity. Argo Blockchain similarly has a “green mining vision” which it is consistently implementing. To switch over to green alternatives and solutions, the company has recently put a lot of its own money on the line. It has purchased an area of land covering 320 hectares in Texas, offering access to 800 megawatts of electrical power, mostly from wind and solar. In addition, Argo also acquired two hydro-powered data centres in Canada in May of this year.
Swissquote has now picked up on the trending theme of “blockchain” and developed an index for it. The new Swissquote Blockchain Index contains companies from all sectors earning revenues from these digital chains. The components are chosen based on the judgement of the index sponsor, using sophisticated filters. The starting line-up features 24 companies in the actively managed strategic barometer. In addition to the companies already mentioned, there are also well-known names such as Intel, MicroStrategy and Coinbase. Less well-known stocks also feature in the index, such as the Japanese blockchain investor Digital Garage and Marathon Digital Holdings, which operates data centres. However, the selection is not set in stone: the index sponsor subjects the barometer to constant review in order to keep its composition up to date.
Management Fee: 1.10% p.a.
Index Sponsor: Swissquote Bank SA
Issuer: Leonteq Securities AG, Guernsey
Guarantor: PostFinance AG, Bern, Switzerland
The open-end tracker (ISIN CH1129844648, SIX Symbol BLOCTQ) on the Swissquote Blockchain Index, exclusively designed by Leonteq, offers investors easy access to the digital mega-trend of the new millennium. With a single investment, it allows them to invest with broad diversification in the blockchain sector. The product participates fully in the movement of the barometer, with deduction of an annual fee of 1.10%. The costs comprise an index calculation fee of 0.85% p.a. plus a management fee of 0.25% p.a. On top of this, there may also be a rebalancing fee of 0.10%. The tracker is ultimately a convincing offer with comprehensible charges, high transparency and broad diversification, along with active management.
We look forward to answering all of your questions about our products and how they are traded. Please don't hesitate to get in touch! Phone: 058 800 11 11, email info@leonteq.com or contact us here.