BlackRock has continued to increase its presence in the digital assets space by launching a new European blockchain exchange traded fund.
The world’s largest money manager, which manages roughly $10tn in assets, said on 29 September that it had added the iShares Blockchain Technology UCITS ETF to its product suite, giving European clients similar exposure to an ETF launched in the US earlier this year.
Omar Moufti, product strategist for thematic and sector ETFs at BlackRock, said: “We believe digital assets and blockchain technologies are going to become increasingly relevant for our clients as use cases develop in scope, scale and complexity.”
BlackRock has swiftly ramped up its exposure to the digital assets world recently, first launching its US-focused Blockchain and Tech ETF earlier this year, then teaming up with Coinbase to offer its customers indirect access to crypto via its Aladdin trading platform. In August, it also launched a spot bitcoin private trust, available to US institutional clients.
It is not the only financial services heavyweight rowing in. Banks including JPMorgan and Nomura and asset managers like Fidelity and Abrdn have all launched digital assets offerings of late, and analysts have predicted that more traditional finance giants are likely to follow suit.
BlackRock’s European blockchain ETF, which carries a total expense ratio of 0.5%, has 35 holdings and is listed on Euronext. Its largest allocations are to crypto exchange Coinbase, as well as trading giant Galaxy Digital and bitcoin miner Marathon Digital. It also includes Paypal, Nvidia and IBM.
“The continued proliferation of blockchain technology underscores its potential across many industries,” Moufti added. “The exposure offered by the iShares Blockchain Technology UCITS ETF will allow our clients the opportunity to engage with global companies leading the development of the emerging blockchain ecosystem.”
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