The China Securities Regulatory Commission – in charge of handling securities regulation of the nation – has reportedly received required papers for a blockchain-focused exchange-traded-fund (ETF) application.

Specifically, the proposal, submitted on December 24, is from the assets managing firm Penghua Fund located in Shenzhen, is to set up an ETF, specialized in keeping track of how a group of publicly-listed stocks, from companies who work closely with blockchain, are performing. 

If passed, the new ETF would become the first blockchain-focused ETF across China. 

In a report published by the Shanghai Securities Journal, researchers expect that Penghua Fund’s proposal is authorized, numerous other asset managing bodies will follow the path and will submit papers to look for approval for their own funds. 

The SSJ further noted that even if the blockchain industry is still in its early development stage, the introduction of new policy guidance, and an increased number of mature businesses in the sector could contribute to the growth of blockchain-themed ETFs in the region. 

Due to the fact that numerous investors still require support to help them navigate in the blockchain scene, ETFs, with its ability to reflect a diversified basket of assets, could serve as a customized investment channel, and contribute dividends to the investors’ income, as blockchain head downs its path of development.