BlackRock, the world’s largest asset manager, listed new crypto and blockchain-focused ETF on April 27, allowing its investors to get exposure to the industry without direct investments. Called the iShares Blockchain and Tech ETF (IBLC), the new fund has been listed on the New York Stock Exchange’s Arca.
BlackRock applied for the ETF with the SEC in January this year, stating its intention to track the FactSet Global Blockchain Technologies Index provided by the NYSE. The ETF is composed of 41 holdings, out of which Coinbase constitutes about 11.45% of the fund.
With a total of $4.7 million in net assets across 34 holdings, the fund will invest in companies involved in crypto and blockchain development. At least 80% of the fund’s assets will be invested in the stocks, whereas the remaining funds will go towards futures, options, swap contracts, cash, and cash equivalents.
Rachel Aguirre, BlackRock’s head of US iShares product, said at a Wednesday panel event:
“The entire ecosystem around the blockchain has seen rapid growth these past two years, and there are a whole host of economic and societal factors driving this growth.”
Major US asset managers have successfully launched several Bitcoin and crypto-related ETFs in the market. While BlackRock has not indicated plans to offer ETFs that directly invest in crypto assets, CEO Larry Fink said recently that the firm is closely studying the broader cryptocurrency market.
Most recently, BlackRock participated in the $400 million funding round of USDC stablecoin issuer Circle. Circle also revealed a partnership with the firm wherein the two would explore the application of USDC in traditional capital markets.