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Investment management firm BlackRock has introduced a new European blockchain Exchange-Traded Fund (ETF) which will offer clients in Europe access to several blockchains and crypto companies.
As outlined by BlackRock’s Product Strategist for Thematics and Sector ETFs Omar Moufti, these clients will gain exposure to companies that utilize blockchain technology.
The ETF which is dubbed iShares Blockchain Technology UCITS ETF (BLKC) has a total expense ratio (TER) of 0.50% on the pan-European exchange Euronext.
Ultimately, the ETF will help trail the New York Stock Exchange (NYSE) FactSet Global Blockchain Technologies Index benchmark for both United States and Non-U.S companies utilizing blockchain and crypto technology.
From developed and emerging markets, BLKC provides exposure to 35 global companies. On a 100% scale, the ETF will bring clients up to par by 75% with companies that utilize blockchain including crypto miners and cryptocurrency exchanges. The other 25% is meant for blockchain ecosystem supporters like payments and semiconductor firms.
So far, its key allocations are going to Coinbase, Galaxy Digital, and bitcoin miner Marathon Digital. Although, no direct investment will be made in cryptocurrencies with the ETF.
ETF BLCK Offers Global Exposure
Moufti said, “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. The continued proliferation of blockchain technology underscores its potential across many industries.”
He continued, “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.”
Recently, BlackRock with about $10 trillion in assets under management (AUM) partnered with cryptocurrency exchange Coinbase to offer its institutional clients access to crypto. Tapping Coinbase Prime as the third-party platform, BlackRock clients can merge agency trading, custody, prime financing, staking, and staking infrastructure starting with Bitcoin (BTC).
Similarly, the investment firm also launched its first investment product trust with direct exposure to BTC. The spot Bitcoin trust was introduced in response to a rise in demand from its high-net-worth clients looking for access to cryptocurrency.
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