BlackRock, the world's largest asset manager based in the US, launched an exchange traded fund iShares Blockchain Technology UCITS for EU customers.
BlackRock was founded in 1988 and has grown to $82 billion market capitalization. The company was widely criticized for its close relations with the Fed during the COVID-19 pandemic and influencing the American administration.
The ETF, new BlackRock product, follows the NYSE FactSet Global Blockchain Technologies Index and comprises of 35 global companies from developed and emerging markets. These companies mostly deal in the blockchain space, such as platforms, miners, DeFi providers, and others, with no investments going directly to cryptocurrencies. The largest allocations of the fund (up to 75%) go towards crypto exchanges or mining-related companies. The remaining quarter covers financial businesses.
"The continued proliferation of blockchain technology underscores its potential across many industries. The exposure offered by the iShares Blockchain Technology UCITS ETF will allow our clients the opportunity to engage with global companies leading the development of the emerging blockchain ecosystem." - Omar Moufti, Product Strategist at BlackRock.
BlackRock has been demonstrating a rapidly growing curiosity towards blockchain and crypto industry this year. Just a couple of months ago, the company teamed up with Coinbase and offered Bitcoin trading to its clients. It is interesting, because a few years ago Larry Fink, CEO of BlackRock, used to be sceptical about Bitcoin and cryptocurrencies, labelling them as an "index of money laundering". Now, he seems to have changed his mind, and the company recently started to assess "digital currencies, stablecoins and the underlying technologies".
It’s encouraging that such a giant is able to overcome the initial scepticism and examine the new realm in detail, helping their clients to become a part of the crypto world. Looking forward to new products from the investment giant!