Blockchain ETF Officially Launched By BlackRock For European Customers

BlackRock, the worlds biggest asset manager, is rapidly increasing its exposure to digital assets by launching a new European blockchain ETF (Exchange Traded Fund). The company, which manages approximately $10 trillion in assets, announced on September 29th that it had successfully added the iShares Blockchain Technology UCITS ETF to its product suite, thereby providing European clients with exposure to an ETF after launching one earlier this year within the United States.

What to expect?

The BlackRock team firmly believes that digital assets and blockchain technologies will become increasingly relevant for clients as use cases grow in complexity, scale and scope, said Omar Moufti, Product Strategist for Thematic and Sector ETFs at the company.

Moreover, BlackRock has recently increased its exposure to the world of digital assets, initially launching its U.S. focused blockchain and tech exchange traded fund earlier on in 2022, and then partnering with Coinbase to provide its customers with indirect access to a wide range of cryptocurrencies through its Aladdin trading platform. Additionally, it even launched a spot Bitcoin (BTC) private trust in August, which is available to institutional clients residing in the United States.

The future looks bright

Although we are still in the midst of an ongoing bear market, this has not deterred institutional investors from regularly expressing their interest in crypto, blockchain, NFTs, and the metaverse. In fact, BlackRock is not the only financial services titan entering the fray. Banks such as JPMorgan and Nomura, as well as asset managers such as Fidelity and Abrdn, have recently launched digital asset offerings as well, and analysts predict that even more big names in the traditional finance sector are likely to follow suit.

Furthermore, BlackRocks European blockchain ETF, which has 35 holdings and is traded on Euronext, has a total expense ratio of 0.5%. Its biggest investments are presently in Coinbase, trading titan Galaxy Digital, and BTC miner Marathon Digital. IBM, Nvidia and Paypal are also on the list with more expected to join before long.

The continued spread of blockchain technology highlights its potential across several industries, Moufti added. He further stated that the iShares Blockchain Technology UCITS ETF exposure shall provide clients with the chance to participate in globally recognized companies that are actively leading the development of the burgeoning blockchain ecosystem.