BlackRock Unveils Blockchain ETF for Europe
The iShares Blockchain ETF is designed to track the NYSE FactSet Global Blockchain Technologies Capped Index. The fund is listed on Euronext in Amsterdam under the ticker BLKC, with a total expense ratio (TER) of 0.50%.
According to BlackRock’s website, the new ETF provides exposure to companies driving blockchain and crypto technology development, innovation, and utilization.
What Are the Key Holdings in BlackRock’s Blockchain ETF?
BlackRock has revealed that 75% of the ETF’s holdings are in blockchain-related companies, including miners and exchanges. The remaining 25% are invested in companies that support the blockchain ecosystem, such as those in payments and semiconductor sectors. The fund consists of 35 global companies out of 50 holdings, including fiat and cash derivatives that do not directly invest in cryptocurrencies.
European investors in this ETF gain exposure to well-known companies like Coinbase, Galaxy Digital, and Marathon Digital. These firms represent some of the top holdings in the fund.
The top five holdings are Coinbase, USD Cash, fintech firm Block, Marathon Digital Holdings, and Riot Blockchain. Coinbase is the largest holding at 13.20%, followed by USD Cash at 13%, Block at 11.40%, Marathon Digital at 11.13%, and Riot Blockchain at 10.50%.
The ETF also includes 23 IT companies, six financial firms, and one communications company. Notable companies among these holdings include Paypal, Nvidia, and IBM. Interestingly, this ETF is listed in USD, which is somewhat unusual for Europe, where most instruments are typically listed in EUR.
BlackRock Strengthens its Commitment to Crypto
The launch of this blockchain-focused fund coincides with a growing adoption of blockchain technology in both private and public sectors. Omar Moufti, BlackRock’s product strategist for thematic and sector ETFs, stated that the firm recognizes the increasing relevance of digital assets and blockchain technologies for its clients as their use cases evolve in scope and complexity. He emphasized that the ongoing expansion of blockchain technology highlights its vast potential across various industries. The iShares Blockchain Technology UCITS ETF gives BlackRock clients an opportunity to invest in global companies that are advancing the development of the blockchain ecosystem.
BlackRock already provides its U.S. clients with exposure to blockchain and cryptocurrency products through its iShares Blockchain and Tech ETF. This ETF for the European market marks BlackRock’s latest move into the digital asset space. A previous similar initiative was the creation of a private spot Bitcoin trust on August 11, as reported by CryptoChipy. This fund is only available to U.S. institutional investors and aims to track Bitcoin’s performance, minus the trust’s expenses and liabilities.
In addition, BlackRock partnered with Coinbase to offer crypto investments to institutional investors. The partnership, announced on August 4, allows BlackRock’s institutional clients to access cryptocurrencies through Coinbase Prime, starting with Bitcoin. The partnership offers crypto trading, custody, prime brokerage, and reporting services via Coinbase Prime through BlackRock’s Aladdin platform. Coinbase benefits greatly from this partnership, as it holds a significant position in BLKC.
In April, BlackRock took part in a $400 million funding round for fintech startup Circle. Aside from the investment, BlackRock became the primary asset manager for Circle’s USDC Cash Reserves. The two firms also collaborated to explore the capital market uses of the USDC stablecoin. Additionally, BlackRock announced in early September that it would use Kraken’s CF Benchmarks Bitcoin index for its upcoming crypto offerings.
BlackRock’s ongoing involvement in crypto reflects the increasing demand for digital investment strategies as the ecosystem matures. It is not the only major financial services firm entering the crypto space, with banks like JPMorgan and Nomura and asset managers such as Fidelity and Abrdn also expanding their digital asset offerings.
Crypto ETFs Gaining Significant Popularity
The Crypto ETF market is gaining significant traction, indicating the increasing maturity of the market. Reports suggest that BlackRock is also developing a metaverse-related ETF. However, for those looking to save on fees and gain more flexibility, it may be more beneficial to directly invest in crypto assets. By doing so, investors can avoid higher ETF management fees and invest in any stablecoin (not just USD, as BlackRock currently offers).
This new proposed fund, the iShares Future Metaverse Tech and Communications ETF, is still in the early stages, with fees and the ticker symbol yet to be disclosed. The fund could potentially include companies involved in virtual platforms, social media, gaming, digital assets, and augmented reality. BlackRock Technology Opportunities Fund co-portfolio manager Reid Menge has described the metaverse as a transformative force in the making.
by Our Certified Author Chante Burrell blackrock Read More Latest Crypto News Topic: 9 Reasons Why Betovix Casino Rocks 15 hours ago Latest Crypto News BlockBets Casino: No KYC Ever & Amazing Advent Calendar 1 day ago Latest Crypto News Having Crazy Fun on Spinoloco Casino 2 days ago
