BlackRock writes that the growth of digital assets and the blockchain ecosystem has continued to increase, driving demand for investment strategies in this emerging universe.
BlackRock has launched an ETF that is designed to enable European customers to gain exposure to a variety of companies involved in the development, innovation, and utilisation of blockchain and crypto technologies.
The iShares Blockchain Technology UCITS ETF [BLKC] will track the NYSE FactSet Global Blockchain Technologies Capped Index. BLKC comprises 35 global companies from developed and emerging markets with 75 per cent exposure to companies whose primary business is related to blockchain, such as crypto miners and exchanges, and 25 per cent exposure to companies who support the blockchain ecosystem, such as payments and semiconductor companies. The exposure is at the forefront of innovation, paving the future of blockchain, the firm writes. BLKC does not directly invest in cryptocurrencies.
Blockchain has already given rise to decentralised payment systems, underlying a notional USD1 trillion market cap for cryptocurrencies and digital assets, and the distributed ledger technology continues to offer myriad possibilities for efficiencies in the capital markets.
Furthermore, BlackRock writes that trading volumes for digital assets, and the depth of market, has improved five times year-over-year, from USD10 billion average daily volume at 31 December 2017 to USD53 billion at 31 August 2022.
Omar Moufti, product strategist for thematic and sector ETFs at BlackRock, says: ‘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. 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.’
The Fund is listed on Euronext, with a total expense ratio (TER) of 0.50 per cent.