{
    "type": "ETF",
    "ucits": true,
    "fund_name": "Global X Blockchain UCITS ETF",
    "investment_objective": "To track the Solactive Blockchain v2 Index by investing primarily in equity securities and derivatives representing blockchain companies.",
    "primary_asset_class": "Equity",
    "geographic_sector_focus": "Global exposure to blockchain-related companies",
    "replication_method": "synthethic",
    "swaps": true,
    "derivatives": true,
    "leverage": false,
    "inverse": false,
    "complex_factors": [
        "Unfunded total return OTC swaps",
        "Use of derivatives for investment purposes",
        "Exposure to blockchain companies with high volatility and regulatory risk",
        "Concentration risk in a niche, emerging technology sector"
    ],
    "classification": "complex",
    "supporting_data": "The Fund uses synthetic replication via total return 'unfunded' OTC swaps and exchange-traded equity futures to track the Solactive Blockchain v2 Index. The KIID explicitly mentions the use of derivatives not only for hedging but also for investment purposes, indicating inherent derivative exposure. The Fund invests in a concentrated portfolio of blockchain companies, which are subject to high volatility, regulatory uncertainty, and operational risks. The risk profile is high (category 6-7), reflecting the complexity and riskiness of the underlying assets. The PRIIPs KID confirms the use of unfunded OTC swaps and derivatives, and the risk indicator is 6 out of 7, indicating high risk. There is no leverage or inverse exposure, but the synthetic replication and derivative usage, especially unfunded swaps, trigger MiFID II complexity classification. The Fund is UCITS compliant but the presence of unfunded swaps and derivative instruments as a core part of the investment strategy makes it complex under MiFID II. The costs include transaction costs related to derivatives and securities lending, further supporting complexity. No capital protection or structured features are present. The Fund\u2019s risk disclosures highlight counterparty risk and derivative risk, reinforcing complexity. The fact that the Fund tracks a niche, complex index related to blockchain companies adds to the difficulty for retail investors to understand the product fully, supporting the complex classification."
}