BlackRock, the world’s largest asset manager, has listed a blockchain exchange-traded fund (ETF) with a total expense ratio (TER) of 0.50% on the pan-European exchange, Euronext.
The ETF, fully known as the iShares Blockchain Technology UCITS ETF (BLKC), seeks to track the New York Stock Exchange (NYSE) FactSet Global Blockchain Technologies Index.
This index is a benchmark of US and non-US firms developing and utilizing blockchain and crypto technologies.
Therefore, the EFT is targeted at providing BlackRock’s European clients with the opportunity to engage and gain exposure to these companies, noted Omar Moufti, BlackRock’s Product Strategist for Thematics and Sector ETFs.
“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,” Moufti said.
“The continued proliferation of blockchain technology underscores its potential across many industries,” he added.
BlackRock noted that BLKC provides exposure to 35 global companies from the developed and emerging markets, with 75% of the fund committed to blockchain-based businesses and 25% to blockchain ecosystem supporters such as payment firms.
However, the asset manager pointed out that the EFT does not make any direct investment in cryptocurrencies.
Recent Consolidations
BlackRock’s new record comes months after the asset manager partnered with Coinbase, an American cryptocurrency exchange, to provide institutional clients of Aladdin, its investment management platform, with crypto trading capabilities.
In Mid-August, the firm launched the BlackRock Future Financial and Technology ETF on the electronic securities exchange, NYSE Arca. The ETF invests in companies disrupting the fintech industry.
Later in the month, the asset manager launched the industry’s first buy-write fixed income ETFs.
These were iShares 20+ Year Treasury Bond BuyWrite Strategy ETF, iShares High Yield Corporate Bond BuyWrite Strategy ETF and iShares Investment Grade Corporate Bond BuyWrite Strategy ETF.
“The iShares BuyWrite ETFs aim to increase yield potential for investors, debuting during the most challenging environment for fixed income in decades due to inflation, hawkish central banks and interest rate volatility,” BlackRock explained in a statement.
In a contrary move in June, BlackRock announced plans to stop accepting new trades on August 25th for 11 EFTs listed in the United States.
These included the iShares MSCI Argentina and Global Exposure ETF and the iShares Interest Rate Hedged Emerging Markets Bond ETF.
