BlackRock Announces the Launch of Its First Crypto Exposed ETF
The world's largest asset manager, BlackRock, has just launched a blockchain and technology ETF, giving investors exposure to cryptocurrency companies. The world's largest asset manager, BlackRock, has listed its iShares exchange-traded fund (ETF) to provide investors with exposure to the blockchain and cryptocurrency markets without having to invest directly in cryptocurrencies.
In January, the SEC approved an application for the iShares Blockchain and Tech ETF (IBLC) ETF, which aims to track the investment outcomes of an index made up of U.S. and non-U.S. companies involved in the creation, innovation, and use of blockchain and crypto technology. The ETF, which has around $4.7 million in net assets, does not own cryptocurrencies or digital assets directly, but instead keeps track of a number of global enterprises involved in the industry. The focus is mostly on the space businesses in the United States and abroad, such as exchanges.
The ETF is a "gradual entry point into the blockchain ecosystem," according to Rachel Aguirre, BlackRock's head of US iShares product, and includes holdings such as crypto exchanges, crypto miners, and underlying technology.
“The entire ecosystem around the blockchain has seen rapid growth these past two years, and there are a whole host of economic and societal factors driving this growth," she added.
In addition to the launch of the new ETF, BlackRock released a paper outlining three major market segments that are currently undergoing significant change.
While much of the attention focused on digital assets focus on price and volatility, the true value of blockchain has yet to be completely understood, according to the paper.
"We believe the broader opportunity leveraging blockchain technology for payments, contracts and consumption broadly - has not yet been priced in."
The paper also emphasizes the use of central bank digital currencies (CBDCs), noting that 87 countries are currently conducting research into the technology. The crypto and blockchain ETF market is increasingly attractive to institutional investors seeking exposure to the cryptocurrency sector.
CBW - External Analyst