Through the establishment of an exchange-traded fund (ETF), BlackRock (NYSE: BLK) is now offering European investors the opportunity to gain exposure to several firms involved in the creation, invention, and use of blockchain and cryptocurrency technology. In response to Finextra's report, the investment giant launched the fund on September 29.
The iShares Blockchain Technology UCITS ETF [BLKC] is designed to mirror the NYSE FactSet Global Blockchain Technologies Capped Index. BLKC comprises 35 global firms from established and developing economies, with 75% exposure to companies whose principal business is tied to blockchain, such as cryptocurrency exchanges and miners, and 25% exposure to companies that support the blockchain ecosystem, such as payment and semiconductor companies.
Omar Moufti, product strategist for thematic and sector ETFs at BlackRock, 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. The continued proliferation of blockchain technology underscores its potential across many industries.”
“The exposure offered by the iShares Blockchain Technology UCITS ETF will allow our clients the opportunity to engage with global companies leading the development of the emerging blockchain ecosystem.”
A notional market cap of $1 trillion for cryptocurrencies and digital assets is supported by blockchain, and distributed ledger technology continues to offer a wide variety of opportunities for improving operational efficiencies in financial markets.
In August, BlackRock had partnered with Coinbase to offer crypto for institutional investors who already own assets on Coinbase into the Aladdin asset manager suite of tools.