After a first launch in the United States, BlackRock will offer its European clients an ETF dedicated to blockchain companies. Investors have a natural entry into the growing blockchain and cryptocurrency market, according to the world’s largest asset manager.
An ETF of 35 crypto companies
BlackRock is going further and further into the crypto space by launching an ETF in Europe. This new product should offer its European institutional clients the same advantages as the ETFs launched in the United States.
The asset manager will launch the iShares Blockchain Technology UCITS ETF. The ETF will track the NYSE’s FactSet Global Blockchain Technology Index. The index is linked to 35 companies worldwide. It is listed on Euronext under the symbol BLKC.
BlackRock, the world’s largest asset manager, is extending its ETF focused on blockchain and cryptocurrency companies to its European clients.
An ETF (Exchange Traded Fund) is an indexed securities investment fund. That said, unlike traditional investment funds, ETFs are publicly traded and can therefore be bought and sold like stocks. In addition, ETFs are modeled on another stock market index in order to reproduce its performance without exceeding it, also called passive management.
Larry Fink added that he thinks “digital currencies will play a huge role” and said he thinks “helps consumers around the world, whether it’s bitcoin or otherwise.” On the other hand, Bitcoin and cryptocurrencies are durable assets, according to Rick Rieder, chief investment officer (CIO) of asset management firm BlackRock.
In this case, BlackRock’s ETF, the iShares Blockchain Technology UCITS ETF, is designed to track the New York Stock Exchange (NYSE) FactSet Global Blockchain Technology Cap Index. The latter is listed on Euronext and currently has 35 companies.
“I still think bitcoin and crypto are durable assets,” Rick Rieder explained during an interview with Yahoo Finance Live. “It’s an enduring business, but there was so much excess built around it,” Rieder added during the interview.
Blackrock responds to customer demand
The iShares Blockchain Technology UCITS ETF will provide exposure to blockchain companies and crypto businesses. The index expects 75% exposure to companies operating primarily in blockchain-related fields. This includes crypto miners and exchanges. 25% of the index is for companies that support the blockchain ecosystem.
BlackRock, the giant with over $10 trillion in assets under management, has continued to focus on the blockchain and cryptocurrency markets since the start of the year.
Omar Moufti, product strategist for thematic and sector ETFs at BlackRock reacted to the launch of the ETF aimed at European clients. “We believe that digital assets and blockchain technologies will become increasingly relevant to our customers as use cases grow in scope, scale and complexity. The continued proliferation of blockchain technology underscores its potential in many industries,” he said.
For example, in April, the company participated in a $400 million funding round from Circle, the issuer of the USDC stablecoin, precisely to develop use cases for this USD-backed digital asset in the markets. capital. Also note that BlackRock is the primary asset manager for Circle’s liquidity pools.
Most recently, in August, the multinational formed a partnership with Coinbase to offer Bitcoin (BTC) on its Aladdin system in response to strong investor demand.
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Blackrock will launch the first European Blockchain ETF!
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