BlackRock Creates Latest ETF to Invest in 35 Blockchain Projects

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2022-10-04 03:32:54

“We believe that digital assets and blockchain technology will become increasingly relevant for our customers,” said BlackRock ETF product strategist Omar Moufti.

The leading US investment management group – BlackRock is currently providing European investors with exposure to a number of companies involved in the creation, invention and use of blockchain and crypto technologies through the established a simulated index trading fund (ETF) launched by Blackrock himself on September 27.

Blackrock Launches New Blockchain ETF Product

BlackRock, the world’s largest asset manager, has just launched a new Emulated Index Fund (ETF) providing European clients with exposure to the blockchain industry, including a centralized ETF. focus on where the Metaverse could potentially be deployed.

New blockchain ETF launched on September 27 called “iShares Blockchain Technology UCITS ETF (BLKC)”.

BlackRock says 75% of its holdings include blockchain companies such as mining and exchanges, while the remaining 25% are companies that support the blockchain ecosystem.

The fund includes 35 global companies out of a total of 50 projects held, including cash and financial derivatives, but does not directly invest in cryptocurrencies.

BLKC marks the latest milestone in BlackRock’s foray into the digital asset space, with the most recent being the launch of a spot Bitcoin private trust on Aug.

In a report from Finextra September 29, ETF product strategist and topical at BlackRock, Omar Moufti emphasized that the ETF will “enable our clients the opportunity to engage with global company that is leading the development of the emerging blockchain ecosystem,” Omar shared, adding:

“We believe that digital assets and blockchain technology will become increasingly relevant for our customers as use cases continue to evolve in scope, size, and complexity.”

Currently the top 5 projects of the fund include Coinbase (13.20%), USD cash (13.00%), fintech company Block (11.40%), cryptocurrency mining company Marathon Digital Holdings ( 11.13%) and Riot Blockchain (10.50%).

Other projects include 23 IT companies, 6 financial companies, an industrial company and a media company, for a total of 50 projects as of September 28.

However, a Bloomberg report on September 29 suggests that BlackRock may still be working on another Metaverse-focused ETF, called the “iShares Future Metaverse Tech and Communications ETF.”

The fund’s fees and tickers are not listed, the report said, but could be classified as “companies whose products or services are tied to virtual platforms, social networks, games, digital assets, etc. numbers, augmented reality, etc”.

The Metaverse ETF is closely following the insights released on February 14 from BlackRock Technology Opportunities Fund co-manager Reid Menge, who called Metaverse a “revolutionary” network in preparation.”

"Metaverse" mentioned in company transcripts (Source: BlackRock Market Minutes, citing Morgan Stanley, 2021)
“Metaverse” mentioned in company transcript
(Source: BlackRock Market Minutes, citing Morgan Stanley, 2021)

Remember August 4th, Coinbase announced that it has partnered with BlackRock and appears to be reaping the rewards of a high-weight partnership in BLKC, giving institutional investors the possibility cryptocurrency access through the Coinbase Prime service.

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