Blackrock Unveils Blockchain ETF For Clients In Europe

BlackRock, a global asset manager, has introduced a European blockchain ETF, the iShares Blockchain Tech UCITS ETF. This ETF will monitor the NYSE FactSet Global Blockchain Technologies Capped Index.

BlackRock Releases New ETF For European Clients 

The new ETF, dubbed BLKC, will allow European users to access various firms involved in the innovation, utilization, and development of crypto and blockchain technologies. 

Meanwhile, the ETF is available on Euronext and has a 0.50% total expense ratio (TER). Also, the blockchain ETF consists of 35 international firms from emerging and developed markets. 

These entities have 25% exposure to firms that support blockchain tech firms, such as semiconductor and payment firms. Additionally, they have a 75% exposure to firms whose primary business is similar to blockchain, like exchanges and crypto miners.

The latest ETF is expanding the future of blockchain technology. It does not invest directly in cryptos.

Furthermore, BlackRock is responding to the high clamor for investment techniques in digital assets. Besides, the digital asset second has expanded lately, producing decentralized payment options, a market cap of over $1 trillion for crypto, and many opportunities for capital market efficiency.

Also, the trading volume of digital assets has increased by five times compared to the same time last year. The average daily volume on December 31st 2017, was $10 billion. However, the number has since increased to over $53 billion On August 31st, 2022. 

BlackRock’s Blockchain ETF Provides Clients Access To The Blockchain Sector 

Omar Moufti, the product strategist for ETFs at BlackRock, said the company believes blockchain tech and digital assets will bring great value to its clients. 

Besides, the use cases of these technologies have been increasing recently. In addition, blockchain tech adoption has been rampant, showing the sector’s huge potential. 

The BLKC will provide users access to international firms that are fostering growth in the blockchain sector. Some months ago, the asset manager released a spot BTC private trust for US institutional investors. 

This was after BlackRock signed a partnership deal with Coinbase’s prime brokerage subsidiary. However, the partnership is limited to only BTC. 

It will allow institutional investors in BlackRock to enjoy crypto custody, trading, and prime brokerage. Clients will also enjoy the Coinbase Prime feature. 

They can easily manage their BTC holdings while conducting risk analysis through Aladdin, BlackRock’s software suite. In April, the company took part in a funding round of about $400 million for Circle, the stablecoin issuer. 

BlackRock is the asset manager for the cash reserves of Circle’s USDC. The asset manager has also collaborated with Circle to explore the usage of its stablecoin in the capital market.