The blackrock giant launches an ETF on crypto companies

BlackRock, the giant with 10 trillion dollars in assets under management, is no longer content to trade “only” tens of millions of dollars in Bitcoin (BTC). By mid-April 2022, the multinational had invested $400 million in Circle, the company that issued the USDC stablecoin. Now BlackRock is launching its own blockchain ETF directly.

An ETF for companies in the blockchain sector

BlackRock, the world’s largest asset manager, has added its exchange-traded fund (ETF) iShares, which allows investors to gain exposure to blockchain and cryptocurrency markets without investing directly in cryptocurrencies. .

The iShares Blockchain and Tech ETF (IBLC) application was filed with the U.S. Securities and Exchange Commission in January “to track the investment results of an index of U.S. and non-U.S. companies involved in the development, innovation and use of blockchain”. and cryptographic technologies”.

ETFs are a popular investment product that allows people to buy stocks that represent assets, whether it’s real estate, foreign currencies, or even bitcoins. The ETF will not track cryptocurrencies directly, but instead involves US and international companies in the industry, such as exchanges. In fact, the majority (11.45%) of the new fund will be allocated to Coinbase, the largest cryptocurrency exchange in the United States and one of the largest in the world.

Other companies the ETF will focus on include bitcoin miners Marathon Digital Holdings (11.19%) and Riot (10.41%), as well as payments giant PayPal, which has launched its crypto services in 2020.

Blackrock: a staunch supporter of Bitcoin

The stated goal of BlackRock’s new ETF is to give its investors access to the crypto asset space, which is “growing rapidly as blockchain use cases evolve.”

BlackRock’s iShares subsidiary has released a report outlining three key areas of profound change in the global economy. This makes it a source of strong growth.
The field of digital assets and its various technologies is one of them. BlackRock facilitates transactions directly through Bitcoin because there is no middleman.

“Simplify transactions with Bitcoin. Without intermediaries to facilitate transactions, you can get your purchases faster. »

And the asset management giant’s optimism about the future of cryptocurrencies is overflowing. As such, BlackRock believes that the enormous potential of digital assets is far from being properly assessed, especially if it inspires central bank digital currencies.

ETFs come shortly after brokerage firm Fidelity launched two ETFs to track the crypto industry and the Metaverse. The Metaverse is a more immersive future form of the Internet that many large companies are already betting on.

New York-based BlackRock, which manages nearly $10 trillion in assets, has been interested in the crypto space for some time, and its CEO admitted last year that the company was looking into bitcoin. Earlier this month, the company announced that it would become the primary asset manager for USDC Cash Reserve, the fiat currency that backs Circle’s USDC stablecoin.

Crypto-assets and their technology are evolving in all directions. They are attracting more and more (very) major players in global finance. Another asset management giant, Fidelity Investments ($4.2 trillion under management) has just opened up the option for its clients to offer bitcoin for their retirement savings plans.

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The blackrock giant launches an ETF on crypto companies

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