Blackrock Launches New ETF Focused On European Customers

Table of Contents

• Details Of The New ETF 
• Betting On Blockchain And Crypto 
• A Metaverse-Focused ETF? 
• Pivot To Blockchain And Crypto Not Surprising 

The world’s largest asset manager, Blackrock, has announced the launch of a new Exchange Traded Fund (ETF). 

The new ETF will look to provide European customers exposure to the blockchain space. Several reports have also indicated that a metaverse-focused ETF could also be in the pipeline. 

Details Of The New ETF 

The new Blackrock ETF is called the iShares Blockchain Technology UCITS ETF and was launched on the 27th of September. Blackrock elaborated on the ETF further, stating that 75% of its holdings consisted of blockchain companies and exchanges, while the remaining 25% consisted of companies supporting the larger blockchain ecosystem. The fund consists of 50 holdings, including 35 global companies. The holdings include fiat cash and derivatives but do not directly invest in the crypto ecosystem. 

The new Blackrock ETF will give the asset manager’s European clients access to major companies in the crypto space, including Coinbase, Galaxy Digital, and Marathon Digital. The biggest holdings in the fund are Coinbase (13.20%), USD Cash (13%), Block (11.40%), Marathon Digital Holdings (11.13%), and Riot Blockchain (10.50%). Other holdings include six financial companies, one industrial company, one communications company, and 23 IT companies. 

Betting On Blockchain And Crypto 

The new ETF marks Blackrock’s latest foray into the digital asset space. Previously, Blackrock had created a private Spot Bitcoin trust on the 11th of August. Additionally, it had also partnered with Coinbase, offering crypto to institutional investors. Speaking about Blackrock’s latest venture in the digital asset space, Product Strategist at Blackrock, 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.”

With the launch of the new ETF, it’s clear to see that Blackrock believes blockchain and crypto have a strong future. 

A Metaverse-Focused ETF? 

Reports have also emerged suggesting that the asset manager could also be working on another metaverse-focused ETF. This ETF will be called the iShares Future Metaverse Tech and Communications ETF. The report added that the fees and ticker associated with the fund have not yet been listed. However, there is speculation that it could include firms with products and services closely tied with virtual platforms, gaming, social media, digital assets, augmented reality, and more. 

Speculation around the metaverse ETF comes after insights from BlackRock Technology Opportunities Fund co-portfolio manager Reid Menge, which were published on the 14th of February, calling the metaverse a revolution in the making. 

Pivot To Blockchain And Crypto Not Surprising 

It comes as no surprise that asset managers and financial institutions are looking to explore the cryptocurrency ecosystem and blockchain technology. Blockchain and crypto have taken the mainstream by storm, and plenty of institutions are interested enough to pour capital into this new ecosystem and asset class. Additionally, even clients of institutions are demanding access to this space. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.