Blockchain / Crypto News / Cryptocurrency · October 1, 2022

Blackrock’s Latest ETF Invests In 35 Companies Related To Blockchain

The world’s largest asset manager, BlackRock, recently launched a new exchange-traded fund (ETF) for its European clients that would provide them exposure to the blockchain space.

Reports have also indicated that the asset manager is also working on developing another ETF, which would be focused on the Metaverse.

Newest ETF

On September 27th, the renowned asset manager rolled out the new blockchain ETF, which it has named iShares Blockchain Technology UCITS ETF.

According to the company, 75% of the holdings comprise of blockchain firms, such as exchanges and miners, while the remaining 25% of the companies are those supporting the blockchain ecosystem.

There are a total of 50 holdings, out of which 35 of them are blockchain-related companies and the remaining are derivatives and cash.

However, it should be noted that there are no direct investments made in cryptocurrencies. The latest ETF is just part of the series of moves that BlackRock has been making in the digital assets space.

Before this, the company’s most recent move had been announced on August 11th, when it had introduced a private spot Bitcoin trust.

Blockchain ecosystem

A report on September 29th highlighted the comments from Omar Moufti, the product strategist for ETFs at BlackRock.

He said that the latest ETF would provide clients of the asset manager the opportunity to interact with global firms that are making contributions to the development and advancement of the blockchain ecosystem.

He went on to say that blockchain technologies and digital assets are likely to become more and more relevant for clients, with the development of use cases in scale, scope as well as complexity.

The top five holdings in the latest ETF are Coinbase, USD Cash, fintech company Block and Marathon Digital Holdings, and Riot Blockchain, both of which are crypto mining companies.

Their shares in the fund are 13.20%, 13%, 11.40%, 11.13% and 10.50%, respectively. There are 23 other IT companies that are also included, one industrial firm, six financial firm and one communications firm.

All of these combined make a total of 50 holdings.

Another ETF

However, on September 29th, a report published by Bloomberg revealed that BlackRock could be developing yet another ETF, only this time its focus would be on the Metaverse.

The rumored name of the said ETF is iShares Future Metaverse Tech and Communications and its ticket and fees are not listed as yet.

But, it is expected to comprise companies that are offering products and services related to virtual platforms, digital assets, gaming, augmented reality, social media and more.

This Metaverse ETF would come after Reid Menge, the co-portfolio manager of the BlackRock Technology Fund, had referred to the Metaverse as a revolution on February 14th.

Coinbase had announced on August 4th that it was teaming up with BlackRock and is undoubtedly enjoying the rewards of the said partnership due to its high share in the new ETF.

Thanks to the partnership, institutional investors can use its Coinbase Prime service to access crypto.