Blackrock Launches Blockchain ETF, Naming Cryptocurrency As One Of Three Big Opportunities
Blackrock, an American multinational investment management corporation that is a leader in investment management, risk management and advisory services worldwide, has launched its blockchain ETF, offering its investors exposure to the cryptocurrency sector.
Blackrock is the world’s largest asset manager with $10 trillion in assets under management.
The asset manager detailed “the Ishares Blockchain and Tech ETF seeks to track the investment results of an index composed of U.S. and non-U.S. companies that are involved in the development, innovation, and utilisation of blockchain and cryptocurrency technologies”.
Blackrock did note that its ETF does not directly invest in digital currencies. “The expansion of our megatrends line-up today reflects the power of the millennial and rise of the self-directed investor, whose buying habits have reshaped mainstream consumer behaviours, and in turn, the companies in which they invest,” Rachel Aguirre, BlackRock’s head of US iShares product, said in a statement.
“While most of the market attention has focused on the price and volatility of cryptocurrencies themselves, we believe the broader opportunity — leveraging blockchain technology for payments, contracts and consumption broadly — has not yet been priced in,” the paper states.
Blackrock has been looking into offering their clients exposure to the cryptocurrency sector. “Blackrock is studying digital currencies, stablecoins, and the underlying technologies to understand how they can help us serve our clients,” CEO Larry Fink said in March.
Earlier in April, Blackrock and a few other companies such as Fidelity, participated in a $400 million funding round for cryptocurrency firm Circle Internet Financial, the issuer of the stablecoin USDC.
“In addition to its corporate strategic investment and role as a primary asset manager of USDC cash reserves, Blackrock has entered into a broader strategic partnership with Circle, which includes exploring capital market applications for USDC,” the cryptocurrency firm detailed.
Cryptocurrency ETFs are gaining popularity among institutional investors as a pathway to gaining exposure to the highly lucrative cryptocurrency industry.
The debates surrounding a spot Bitcoin ETF have recently been reignited after a Nasdaq survey detailed that 72% of the 500 financial advisers interviewed would be more likely to invest their clients funds in a spot fund over a futures-based one.