French quantitative asset manager TOBAM has introduced an active exchange-traded fund version of its Global Blockchain Equity strategy, marking a new phase in the evolution of its blockchain-related investment offerings. The fund has been launched in partnership with Natixis, which will serve as the market maker. Through this initiative, TOBAM aims to make its established blockchain equity approach accessible to a wider pool of investors who prefer the liquidity and transparency associated with exchange-traded products.
TOBAM operates as an asset management firm focused on applying scientific research and quantitative methods to portfolio construction. The company has positioned this ETF as a natural extension of its long-standing efforts to provide diversified and research-driven investment solutions, particularly in areas influenced by emerging technologies.
Core Investment Philosophy and Research Foundations
The firm’s investment expertise is structured around three primary pillars. One of these is its proprietary Maximum Diversification methodology, which is supported by patented research and a mathematical framework designed to optimize diversification across equity and fixed-income markets. This approach seeks to reduce concentration risks while maintaining broad market exposure.
Another pillar is TOBAM’s research-oriented solutions division, which specializes in building customized investment strategies and services for sophisticated institutional clients. The third component is the LBRTY strategy range, which is designed to help investors reduce exposure to companies linked to autocratic regimes, reflecting a values-based overlay within portfolio construction.
In line with this broader philosophy, TOBAM expanded into digital assets through a dedicated satellite activity known as CRYPTOBAM in 2016. This move laid the groundwork for the firm’s early engagement with cryptocurrency-related investments and research.
Evolution of TOBAM’s Blockchain Strategy
TOBAM has been active in Bitcoin-related investment strategies since 2017. In 2021, the firm launched an open-ended fund designed to provide investors with exposure to publicly listed companies whose performance is closely linked to the cryptocurrency ecosystem. Since September 2023, that strategy has also been made available through life insurance platforms. While performance has been volatile, the fund has delivered strong cumulative returns over time, highlighting both the potential and the risks associated with blockchain-linked equities.
The newly launched ETF builds on this track record while adopting a more accessible structure. The firm’s founder, Yves Choueifaty, has indicated that introducing the strategy in an exchange-traded format was a logical progression. He has emphasized that the ETF structure is intended to broaden the investor base by offering daily liquidity and clear pricing while maintaining the core characteristics of the underlying strategy.
Structure and Portfolio Composition
The TOBAM Global Blockchain UCITS ETF, trading under the ticker BBLOK, is domiciled in Luxembourg and listed on Euronext ETF Europe. The fund carries a total expense ratio of 0.91 percent. Its investment universe consists of companies that are involved in areas such as cryptocurrency mining, brokerage services, hardware manufacturing related to mining operations, or firms that hold Bitcoin on their balance sheets. Importantly, the ETF does not invest directly in cryptocurrencies, instead focusing on equity exposure linked to the broader blockchain economy.
The portfolio is not limited to small or speculative firms. Its top holdings include large, well-established institutions such as Northern Trust, Visa, and BlackRock, which have been identified as having meaningful involvement in crypto-related activities or exposure to Bitcoin. This composition is intended to provide indirect exposure to the digital asset sector while maintaining diversification across companies with substantial non-crypto business lines.
Risk, Diversification, and Investor Considerations
The launch of this ETF illustrates how active exchange-traded funds are increasingly being used to provide exposure to a wide range of asset themes, including blockchain and digital assets. The fund’s appeal lies in offering a diversified approach to crypto-related equities rather than direct ownership of digital currencies. However, the higher expense ratio compared to holding Bitcoin directly means investors must assess whether active management and diversification can deliver long-term value.
Supporters of the structure argue that the presence of large, diversified companies in the portfolio may reduce downside risk during periods of market stress, such as prolonged downturns in the cryptocurrency sector. As a result, the ETF represents a cautious yet forward-looking option for investors seeking exposure to blockchain innovation within a regulated and diversified framework.
