BlackRock’s newest ETF invests in 35 blockchain-related companies
BlackRock, the world’s largest asset manager, has just launched a new exchange-traded fund (ETF) to give European clients exposure to the blockchain industry, while reports indicate a Metaverse-focused ETF could be on the way.
The new blockchain ETF launched on September 27 is called the iShares Blockchain Technology UCITS ETF.
BlackRock said 75% of its holdings consist of blockchain companies such as miners and exchanges, while the other 25% are companies that support the blockchain ecosystem.
The fund includes 35 global companies out of a total of 50 holdings, which also include fiat cash and derivatives, but do not directly invest in cryptocurrencies.
BLKC marks the latest in a series of moves into the digital asset space for BlackRock, with the latest being the launch of a private spot Bitcoin trust on August 11.
In a Sept. 29 Finextra report, product strategist for thematic and sector ETFs at BlackRock Omar Moufti said the ETF will “give our clients the opportunity to engage with global companies that are leading the development of the emerging blockchain ecosystem,” adding to:
“We believe digital assets and blockchain technologies are going to become increasingly relevant to our customers as use cases evolve in scope, scale and complexity.”
The top five holdings in the fund are Coinbase (13.20%), USD Cash (13.00%), fintech firm Block (11.40%), crypto mining companies Marathon Digital Holdings (11.13%) and Riot Blockchain (10 .50%).
Other holdings include 23 IT companies, six financial companies, one industrial company and one communications company, with a total of 50 holdings as of 28 September.
However, a Sept. 29 Bloomberg report suggests that BlackRock may be working on another Metaverse-focused ETF called the iShares Future Metaverse Tech and Communications ETF.
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The report said the fund’s fees and ticker have yet to be listed, but could include “firms that have products or services related to virtual platforms, social media, games, digital assets, augmented reality and more.”
The Metaverse ETF follows insights published Feb. 14 from BlackRock Technology Opportunities Fund co-portfolio manager Reid Menge, who called Metaverse a “revolution in the making.”
On August 4, Coinbase announced that it had partnered with BlackRock and appeared to be reaping the rewards of the partnership with its high weighting in BLKC.
The partnership gives institutional investors the ability to access crypto through its Coinbase Prime service.
