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Gate Blog
Your Gateway to crypto news and insights
BlackRock Launches Blockchain-related ETF for European Markets.
10 October 17:42
[TL;DR]
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Blackrock launches the new Blockchain-related ETF for European markets.
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According to BlackRock's website, the new ETF is for investors who want exposure to a wide range of companies involved in developing, innovating, and using blockchain and crypto technologies.
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75% exposure of the companies in the ETF is related to blockchain, and the other 25% exposure is with companies that assist the blockchain ecosystem.
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The exposure provided by the iShares Blockchain Technology UCITS ETF will allow investors to engage with international companies leading the development of the emerging blockchain network.
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The rising of new digital assets and the ecosystem around blockchain technology has led to an increased need for investment strategies within the space.
Keywords: BlackRock, ETF, Blockchain, Europe, European market
BlackRock sees Potential in Blockchain, launches the ETF
BlackRock, World's Largest Digital Asset Manager, has launched a blockchain-related ETF (exchange-traded fund) for its European customers. The exchange-traded fund, launched on September 27, is identified by BlackRock as the iShares Blockchain Technology UCITS ETF (BLKC).
BlackRock launched this blockchain technology ETF in response to the continuous adoption of digital assets, which it claims is "driving demand" for investment strategies in this space. Hence, the asset manager believes there is a strong future for blockchain and the crypto industry.
"We believe digital assets and blockchain projects will become relevant for our customers as use cases grow in scope, scale, and complexity. The continued spread of blockchain technology underscores its potential across numerous industries. The exposure provided by the iShares Blockchain Technology UCITS ETF will enable our clients the chance to engage with global businesses leading the development of the emerging blockchain system," Omar Moufti, one of the executives at Blackrock, pointed out.
The iShares Blockchain Technology UCITS ETF is listed on Euronext, with a total expense ratio of 0.5%, and is built to mimic the NYSE FactSet Global Blockchain Technologies Capped Index.
According to the investment company, BLKC ETF does not directly invest in digital assets but the underlying technology.
Implications of BlackRock's ETF
As seen by many of the company's recent moves, BlackRock had demonstrated a growing interest in the cryptocurrency industry, working with different exchanges for various reasons; for instance, a few months ago, when BlackRock partnered with Coinbase to offer Bitcoin trading to its clients. Also, in August when the investment company launched a private spot Bitcoin trust offering.
However, the launch of ETF marks the most recent move into the digital assets space for BlackRock. The iShares Blockchain Technology UCITS ETF invests in 35 blockchain companies, with Coinbase, Galaxy Digital, and Marathon Digital receiving the largest allocations. PayPal, Nvidia, and IBM are some of the other companies in the fund.
The ETF offering allows European customers exposure to companies involved in the development, innovation, and deployment of crypto and blockchain technologies. The iShares Blockchain Technology UCITS ETF offers 75% exposure to businesses involved in blockchain, including crypto miners and exchanges, with the remaining 25% exposure to companies supporting the ecosystem.
BlackRock Stock Price is Declining
Despite the most recent news, BlackRock's stock price has been declining for a few days now. It is sold on the New York Stock Exchange under the ticker BLK. It has been declining since the second part of August until today, with a cumulative loss of 11.04%. Its present worth, having fallen 41% from its all-time high attained in November last year, is comparable to what it was right before the global markets crashed in March 2020 due to the pandemic.
Bottom Line
The latest ETF is comparable to the one BlackRock launched in the United States, and BlackRock strongly believes there is a bright future with the blockchain and the crypto industry. This new Exchange-traded fund comes as the adoption of blockchain technology is on the rise. The sector has burst into the mainstream, and customers are eager to pour their capital into the emerging asset class.
Author: M. Olatunji, Gate.io Researcher
Disclaimer:
* This article represents only the views of the observers and does not constitute any investment suggestions.
*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all other cases, legal action will be taken due to copyright infringement.
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