Investment management company AdvisorShares announced on Thursday that it is launching a new exchange-traded fund (ETF) that will include cloud, digital ledger, and blockchain technologies.
The AdvisorShares Sabretooth ETF will begin trading on Friday of this week.
Like many other ETFs, the new financial instrument is going to be actively managed. That means the analysts in control of the fund will be using a specific risk management strategy to regularly the weighting of specific assets within the ETF.
As the name suggests, the company is going to be launched in conjunction with an investment advisory company – Sabretooth advisors.
Neither the statement released by AdvisorShares on Thursday nor the company’s own website, indicate what mix of blockchain and cloud technology firms will be included in the ETF.
But the company did provide an answer as to why it thinks companies that develop or use those technologies are worthy of an ETF.
AdvisorShares: positive future for blockchain technology
The investment manager said that it sees a positive, long-term future for the two technologies and that it expects any investment in them to pay off in the years ahead.
“The investment thesis for [the ETF] holds that companies utilizing cloud computing and digital companies implementing emerging technology like blockchain can realize increased profitability and appreciation in stock prices over an extended time horizon, ” said a company statement. “[AdvisorShares] believes these areas represent the future of technological record-keeping and information exchanging which can deliver a durable investment theme for growth equity opportunities and long-term performance.”
Cryptocurrency fans, who may be excited to hear about the emergence of anything connecting blockchain to ETFs, will be disappointed to know that AdvisorShares will not be investing in any cryptocurrency.
In a presentation issued for prospective investors in the ETF, the firm said very clearly that the fund “does not invest in cryptocurrency.”