TOBAM, the French quantitative asset manager, has launched an active ETF version of its Global Blockchain Equity fund in partnership with Natixis which will act as market maker.
A pioneer in Bitcoin-related investments since 2017, TOBAM established the open-ended fund in 2021 to give investors a focused portfolio of stocks correlated with the cryptocurrency. Since September 2023 it has been available through life-insurance platforms. Performance has been volatile but high with a 179% total return after fees, or 57% annualised.
Yves Choueifaty, the mathematician and former chief executive of Credit Lyonnais Asset Management who founded TOBAM in 2005, said: “Launching this ETF with Natixis CIB is a natural next step, making the strategy accessible to a broader investor base that values the liquidity and transparency of an exchange-traded format.”
The TOBAM Global Blockchain UCITS ETF (BBLOK) is based in Luxembourg and listed on Euronext ETF Europe. It carries a 0.91% total expense ratio and invests in companies involved in mining, brokerage, provision of hardware related to crypto mining or holding Bitcoin on their balance sheets. It does not invest directly in crypto assets.
Our view
David Batchelor, senior analyst at QuotedData, said: “This new fund from TOBAM shows that exposure to near-enough any asset can be offered through active ETFs. The appeal of this fund is in gaining exposure to crypto but with more diversification. And it is far from a list of unknown microcap companies, as the top ten includes behemoths Northern Trust, Visa and BlackRock, all identified as being involved in the crypto market or holding Bitcoin on their balance sheet. However, given the 0.91% TER (versus zero for holding Bitcoin directly) investors will have to be confident that the diversification and active management advantages can add value over the long-term. Presumably the risk of being wiped out in the event of another “crypto winter” is much lower, given the likes of Visa clearly have a lot of non-crypto value. A fund to watch with interest.”
