The world’s largest Digital Asset Manager BlackRock introduces Blockchain ETF in Europe
The world’s largest asset manager, BlackRock, launched a blockchain ETF in Europe. The ETF focuses on large companies in the industry and offers exposure to Coinbase, Galaxy Digital and Marathon Digital.
Called the iShare Blockchain Technology UCITS ETF, the fund allows European clients to increase their exposure to the blockchain space via significant companies in the industry.
The ETF is similar to the one BlackRock launched in the US, and the asset manager clearly believes that there is a strong future for the industry. Product Strategist at BlackRock Omar Mufti said as much,
“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 ETF covers 35 blockchain companies, with the largest allocations to Coinbase, Galaxy Digital and Marathon Digital. Other companies in the fund include PayPal, Nvidia and IBM. Overall, 75% of the companies are exchanges or mining related, while the remaining 25% support the ecosystem.
BlackRock dives deeper into the crypto rabbit hole
BlackRock has shown a growing interest in the cryptocurrency industry, as evidenced by many of the actions the company has taken in recent months. This includes work on exchange in space for a variety of reasons.
In early September 2022, it was revealed that BlackRock would use Kraken’s CF Benchmarks’ bitcoin index for a crypto offering. The firm has also teamed up with Coinbase to expand into the crypto market, with the partnership focusing on helping clients monitor their bitcoin exposure.
BlackRock appears to be bullish on bitcoin and the crypto class. A former BlackRock manager believes that the cryptocurrency is here to stay, and that conviction is also present in other managers.
Crypto ETFs are gaining momentum
There are several developments related to ETFs that speak positively about the maturity of the market. BlackRock is also working on a metaverse-related ETF, according to a report published by Bloomberg recently. There has been little update on this, but this would not be surprising, given the interest that companies both inside and outside the industry have in the metaverse.
Meanwhile, spot ETFs continue to face declines in the US. The SEC rejected a request by Grayscale to convert Bitcoin Trust into a spot ETF. The firm sued in response, which could see a resolution in early 2024.
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