blackrock, the world’s largest asset manager, has just launched a new exchange-traded fund (ETF) to give European clients exposure to the blockchain industry, while reports indicate a Metaverse-focused ETF could be on the way.
The new blockchain ETF launched on September 27 is called the iShares Blockchain Technology UCITS ETF.
BlackRock said that 75% of its holdings consist of blockchain companies such as miners and exchanges, while the other 25% are companies that support the blockchain ecosystem.
The fund includes 35 global companies from a total of 50 holding companies, which also includes fiat cash and derivatives, but does not invest directly in cryptocurrencies.
BLKC is the latest in a series of moves into the digital asset space for BlackRock, In addition to launching a
bitcoin private trust fund on aug 11.
In a September 29 report from Finextra, BlackRock’s product strategist for sector and thematic ETFs, Omar Moufti said that the ETF will “allow our clients the opportunity to participate in global companies that are leading the development of the emerging blockchain ecosystem”, and added:
“We believe that digital assets and blockchain technologies are going to become increasingly relevant to our customers as use cases develop in scope, scale and complexity.”
The fund’s top five holdings are Coinbase (13.20%), USD cash (13.00%), fintech firm Block (11.40%), crypto mining firms Marathon Digital Holdings (11.13%) and Riot Blockchain (10.50%).
Other holdings include 23 IT companies, six financial companies, one industrial company and one communications company, with 50 holdings in total. from September 28.
Nevertheless, a Sept. 29 Bloomberg report suggests that BlackRock may be working on another Metaverse-focused ETF called the iShares Future Metaverse Tech and Communications ETF.
The report said that The fund’s fees and ticker are not yet listed, but it could include “companies that have products or services linked to virtual platforms, social networks, games, digital assets, augmented reality and more.”
The Metaverse ETF follows insights published on Feb. 14 by BlackRock Technology Opportunity Fund co-manager Reid Menge, who called the Metaverse a “revolution in the making.”
On August 4, Coinbase announced that it had entered into a partnership with BlackRock and appeared to be reaping the rewards of the partnership with its high weighting in BLKC.
The partnership offers institutional investors the ability to access cryptocurrencies through its Coinbase Prime service.
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