BlackRock has officially launched a blockchain-focused exchange-traded fund (ETF) that allows investors to gain exposure to the crypto and blockchain industries without directly owning digital assets.
The world’s largest asset manager, which manages approximately $10 trillion in assets, added the Blockchain and Tech ETF (IBLC) to its iShares product line on Wednesday.
The $4.7 million ETF does not directly own cryptocurrencies or digital assets but rather tracks a diverse group of international companies involved in the industry.
The ETF is made up of 41 separate holdings, with the largest single holding being the US-based crypto exchange Coinbase, which accounts for 11.45 percent of the fund. This is closely followed by large Bitcoin (BTC) miners Marathon Digital Holdings, which holds 11.19 percent of the total holdings, and Riot Blockchain Inc., which holds 10.41 percent of the total holdings.
The ETF currently has a healthy 9.15 percent USD cash position, indicating that it is ready for future acquisitions.
Along with the launch of the new ETF, BlackRock released a report that outlined three major market areas that are currently undergoing permanent changes.
The paper explains how bullish BlackRock is on the crypto industry, stating that while most of the focus on digital assets is on price and volatility, the true value of blockchain has yet to be realized, We believe the broader opportunity — leveraging blockchain technology for payments, contracts and consumption broadly — has not yet been priced in.
The paper also highlights the adoption of central bank digital currencies (CBDCs), noting that 87 countries are currently investigating the technology.
Crypto ETFs are becoming increasingly popular among institutional investors as a means of gaining exposure to the cryptocurrency industry.
Discussions about a spot Bitcoin ETF have resurfaced after a recent Nasdaq survey revealed that 72 percent of the 500 financial advisers polled would prefer to invest client funds in a spot fund rather than a futures-based one.
To read our blog on “Bitcoin approaches USD 38,500, Ethereum struggles, and altcoins fall” click here.
