BlackRock has introduced a blockchain technology ETF in response to the continuous expansion of digital assets, which it claims is “driving demand” for investment strategies in this area.
The NYSE FactSet Global Blockchain Technologies Capped index is followed by the iShares Blockchain Technology UCITS ETF.
Moreover, the iShares Blockchain Technology UCITS ETF has a total cost ratio of 0.50% and is listed on Euronext Amsterdam. Also, It consists of 35 international firms from both developed and developing markets.
However, companies that primarily do blockchain-related activities, such as cryptocurrency exchanges and miners, receive 75% of the exposure. The remaining 25% will go to organizations that support technology, such semiconductor manufacturers.
BlackRock further stated that it will not make direct cryptocurrency investments.
BlackRock believes “digital assets and blockchain technologies are going to become increasingly relevant for our clients as use cases increase in scope, scale, and complexity,” according to Omar Moufti, product strategist for thematic and sector ETFs.
He stated, “The growing adoption of blockchain technology highlights its promise across numerous industries”.
In addition, decentralized payment systems enabled by blockchain, according to BlackRock, have a theoretical $1 trillion market cap for cryptocurrencies and digital assets.
The asset manager also said that the average daily trading volume for digital assets increased five times between the end of 2017 and the end of 2022, from $10 billion to $53 billion, according to The Block.
The launch serves as another indication of the largest asset management in the world’s interest in the digital assets market.
In order to give its institutional investors access to bitcoin through trading and custody services as well as the development of a bitcoin trust, BlackRock teamed with cryptocurrency exchange Coinbase in August.
But the company has yet to introduce a cryptocurrency exchange-traded product (ETP).
Nevertheless, the company offers a significant selection of thematic ETFs throughout Europe. The iShares Digital Entertainment and Education UCITS ETF, a digital entertainment and education ETF, was introduced in June.
