BlackRock Launches Blockchain Industry ETF, Names Cryptocurrency as One of Three Big OpportunitiesKiana Griffin
The world’s largest asset manager has launched a blockchain ETF, giving clients greater access to cryptocurrencies and blockchain-related companies.
BlackRock has officially launched a blockchain-focused exchange-traded fund (ETF) that provides investors with access to the crypto and blockchain industry without the need to directly own digital assets.
The world’s largest asset manager, which currently manages around $10 trillion in assets, has added the Blockchain and Tech ETF (IBLC) to its iShares product line.
The $4.7 million ETF does not directly own cryptocurrencies or digital assets, but instead tracks the many international companies that are involved in the industry.
The ETF consists of 41 individual positions, the largest of which is US-based cryptocurrency exchange Coinbase, which makes up 11.45% of the fund. It is followed by major bitcoin (BTC) miners Marathon Digital Holdings with 11.19% and Riot Blockchain Inc., which account for 10.41% of total assets.
Demonstrating readiness for future acquisitions, the ETF currently has a stable cash position of 9.15% in USD.
Along with the release of the new ETF, BlackRock released a report outlining three major areas of the market that are currently undergoing constant change.
The paper details how optimistic BlackRock is about the crypto industry, stating that while much of the focus on digital assets is on price and volatility, the real value of blockchain has not yet been fully realized:
“We believe that the broader possibilities — the use of blockchain technology for payments, contracts, and consumption in general — have not yet been priced in.”
The paper also draws attention to the adoption of central bank digital currencies (CBDCs), noting that 87 countries are currently in the process of exploring the technology.
Crypto ETFs are becoming increasingly popular among institutional investors as a way to gain exposure to the crypto industry.
Discussions about a spot Bitcoin ETF have been resurrected after a recent Nasdaq survey found that 72% of 500 financial advisers surveyed were more likely to put client funds in a spot fund than a futures fund.