BlackRock launches blockchain ETF for European investors
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(Kitco News) - The multinational investment company BlackRock has just increased its engagement with the cryptocurrency sector with the launch of a new exchange-traded fund (ETF) that offers exposure to blockchain and crypto companies for users in Europe.
The iShares Blockchain Technology UCITS ETF is designed to track the NYSE FactSet Global Blockchain Technologies Capped index, according to a press release. The new fund is listed on Euronext under the ticker BLKC and has a total expense ratio (TER) of 0.50%.
According to BlackRock’s website, the new fund is “Designed for investors wanting exposure to a wide variety of companies that are involved in the development, innovation, and utilization of blockchain and crypto technologies.”
The new index tracker is comprised of 35 global companies from both developed and emerging markets. 75% of the companies included in BLKC have a primary business that is related to blockchain, including crypto miners and exchanges. The other 25% are with companies that support the blockchain ecosystem, such as semiconductor and payment companies.
According to the release, BLKC “does not directly invest in cryptocurrencies.”
This new blockchain-focused fund comes as the adoption of blockchain technology is on the rise in both the public and private sectors.
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"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,” was the message shared by Omar Moufti, product strategist for thematic and sector ETFs at BlackRock.
“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,” Moufti said.
Offering exposure to blockchain and cryptocurrency-related products is nothing new for BlackRock. The firm currently offers investors in the U.S. exposure to crypto via its iShares Blockchain and Tech ETF.
In August, the investment company launched a private trust offering US-based institutional clients exposure to spot Bitcoin (BTC). The deal was facilitated by a partnership with the crypto exchange Coinbase, which offers institutional investors access to cryptos through its Coinbase Prime service.