Giant Blackrock launches ETF for crypto companies

BlackRock, a giant with $ 10 trillion in assets under management, is no longer satisfied with trading “only” tens of millions of dollars in bitcoins (BTC). By mid-April 2022, the multinational company had invested $ 400 million in Circle, a company that produced USDC stablecoins. Now BlackRock is directly launching its own blockchain ETF.

ETF for companies in the blockchain sector

BlackRock, the world’s largest asset manager, has added its iShares ETF, which allows investors to access blockchain and cryptocurrency markets without investing directly in cryptocurrencies.

The iShares Blockchain and Tech ETF (IBLC) application was submitted to the US Securities and Exchange Commission in January “to track the investment performance of the index of American and non-US companies involved in the development, innovation and use of the blockchain.” and cryptographic technologies “.

An ETF is a popular investment product that allows people to buy stocks that represent assets, whether real estate, foreign exchange or even bitcoins. The ETF will not track cryptocurrencies directly, but instead engages US and international companies in the industry, such as stock 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 payment giant PayPal, which launched its crypto services in 2020.

Blackrock: a staunch supporter of bitcoin

The stated goal of the new BlackRock ETF is to provide its investors with access to the cryptocurrency space, which is “growing rapidly as blockchain use develops.”

The subsidiary BlackRock iShares has published a report outlining three main 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, as there are no intermediaries.

“Simplify bitcoin transactions. Without intermediaries to facilitate transactions, you can get purchases faster. ยป

And the optimism giant’s optimism about the future of cryptocurrencies is overflowing. Therefore, BlackRock believes that the huge potential of digital assets is far from properly assessed, especially if it inspires the central bank to create digital currencies.

ETFs appear shortly after brokerage Fidelity launched two ETFs to track the crypto industry and Metaverse. Metaverse is a more exciting form of the future of the Internet, which many large companies are already betting on.

New York-based BlackRock, which manages nearly $ 10 trillion in assets, has been interested in cryptocurrency for some time, and its CEO admitted last year that the company was looking for bitcoin. Earlier this month, the company announced it would become chief asset manager of USDC Cash Reserve, a fiat currency that supports the stable cryptocurrency Circle USDC.

Crypto-assets and their technologies are evolving in all directions. They attract more and more (very) big players in world finance. Another asset management giant, Fidelity Investments (under $ 4.2 trillion), has just opened up to its customers the opportunity to offer bitcoins for their retirement savings.