BlackRock Launches Blockchain ETF for European Markets

Paigambar Mohan Raj
Source: Financial News London

BlackRock, the world’s largest asset manager with $8.6 trillion AuM (assets under management), has launched a new blockchain ETF (exchange-traded fund) in Europe. The ETF, called iShares Blockchain Technology UCITS ETF (BLKC), launched on the 27th of September. The fund shares similarities with the one launched in the United States.

According to BlackRock, 75% of its holdings are of companies, such as miners and exchanges. While the other 25% are businesses that serve the blockchain ecosystem. The new ETF will give European clients exposure to major companies such as Coinbase, Galaxy Digital, and Marathon Digital. The biggest holdings in the fund include Coinbase (13.20%), USD cash (13.00%), fintech firm Block (11.40%), Marathon Digital Holdings (11.13%), and Riot Blockchain (10.50%).

Among its 50 assets, which also include fiat money and derivatives, the fund holds 35 multinational corporations. However, it does not make direct investments in cryptocurrencies.

BlackRock sold on Blockchain and Crypto?

The fund is BlackRock’s most recent foray into the world of digital assets. The previous such move was the creation of a private spot Bitcoin trust on the 11th of August. Not only that, but the asset manager also partnered with Coinbase to offer crypto to institutional investors.

Product Strategist Omar Mufti stated,

“We believe digital assets and blockchain technologies are going to become increasingly relevant for our clients as use cases develop in scope, scale, and complexity.” 

Thus it is clear that the asset manager believes there is a strong future for blockchain and the crypto industry.

It is not surprising to see financial giants and asset managers tipping more than just their toes into crypto and blockchain tech. The industry has burst out into the mainstream, and clients are curious and willing to pour their capital into the emerging asset class. in fact, client demand also has a lot to do with giant firms looking into the new industry.

Furthermore, with economic turmoil looming over the world, many are looking at alternate investments, such as blockchain companies and crypto. The interest, from here on, is only set to grow.