BlackRock has Unveiled a Blockchain and Technology Exchange-Traded Fund (ETF)
BlackRock, the world’s largest asset manager with around $10 trillion in assets under management, is a blockchain believer.
The American company has announced the introduction of a new exchange-traded fund (ETF) dubbed the iShares exchange-traded fund, which will focus on blockchain technology, cryptocurrency, and technology companies. As a result, BlackRock customers, including many high-net-worth institutional investors, will be able to gain exposure to the crypto business without having to invest directly in volatile assets such as Bitcoin and Ethereum.
The fund “seeks to track the investment performance of an index comprising of U.S. and non-U.S. companies that are involved in the creation, invention, and exploitation of blockchain and crypto technologies,” according to a filing with the Securities and Exchange Commission earlier this year.
The firm has an 11.45 percent stake in Coinbase, the major cryptocurrency exchange that went public about this time last year. The Bitcoin mining businesses Marathon Digital Holdings and Riot, as well as the payments giant PayPal, are also listed.
The disruptive potential of blockchain and cryptocurrency, according to the report, is “allowing independence and management of personal data while enabling financial inclusion for billions of unbanked individuals.”Following worldwide lockdowns, millennials are increasingly looking for “decentralized digital ecosystems,” according to a report that accompanies the fund.
The fund’s inception comes as traditional finance and cryptocurrency grow increasingly entwined. Fidelity announced earlier this week that clients will be able to allocate Bitcoin to their 401(k) retirement accounts.
Recently, BlackRock announced that it will manage the cash reserves for USDC, the $50 billion Circle-run stable coin that has become vital to the Defi and cryptocurrency ecosystem.
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