BlackRock launches exchange-traded fund for blockchain exposure to Europeans

BlackRock, a global asset manager, has unveiled a new exchange-traded fund (ETF) with the aim of exposing European customers to the blockchain industry, while reports have been indicative of a Metaverse-based ETF, as reported by Cointelegraph.

According to Cointelegraph, the newly launched blockchain ETF is known as the iShares Blockchain Technology UCITS ETF. BlackRock stated that 75% of its holdings consist of blockchain companies such as miners and exchanges, while the rest 25% are companies supportive of the blockchain sector. Reportedly, the fund has 35 global companies out of the total 50 holdings which has the inclusion of fiat cash and derivatives but no direct cryptocurrency investments. BLKC aims to mark a series of moves into the digital assets space for BlackRock, with the recent initiative being the launch of a private spot Bitcoin trust in August.

On the basis of information by Cointelegraph, through a September report from Finextra, Omar Moufti, product strategist for thematic and sector ETFs, BlackRock, stated that the ETF will permit clients the opportunity to engage with global platforms for the purpose of development of the blockchain ecosystem.

“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,” Moufti added.

Moreover, Cointelegraph noted that the top five holdings of the fund are Coinbase (13.20%), USD Cash (13%), fintech firm Block (11.40%), cryptocurrency mining platforms Marathon Digital Holdings (11.13%) and Riot Blockchain (10.50%). Rest of the holdings include 23 IT companies, six financial institutions, one industrials company and one communications company. The Metaverse ETF consists of datapoints from Reid Menge, co-portfolio manager, BlackRock Technology Opportunities Fund. In August, Coinbase made the announcement of entering into a collaboration with BlackRock and seemed to have reaping the rewards of the partnership with BLKC. Also, the partnership provides institutional investors the opportunity to access cryptocurrency through Coinbase Prime service.

(With insights from Cointelegraph)

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