The world’s largest asset manager now has a crypto ETF

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BlackRock noted blockchain’s potential to “enable financial inclusion for billions of unbanked consumers.”

BlackRock Launches Blockchain and Tech ETF

BlackRock, the world’s largest asset manager with around $10 trillion on its books, is bullish on blockchain.

The American company has announced the launch of a new ETF called the iShares exchange-traded fund which will focus specifically on blockchain technology, cryptocurrency and technology companies. This means that BlackRock clients, including many wealthy institutional players, will be able to gain exposure to the crypto industry without having to invest directly in volatile assets like Bitcoin and Ethereum.

BlackRock filed for the fund with the SEC earlier this year, saying that “seeks to track the investment results of an index comprised of US and non-US companies involved in the development, innovation and use of blockchain and crypto technologies.”

The fund has an 11.45% allocation to major cryptocurrency exchange Coinbase, which memorably went public around this time last year. Other companies included are Bitcoin mining companies Marathon Digital Holdings and Riot, as well as payments giant PayPal.

the iShares website highlights the disruptive potential of blockchain and cryptocurrency, noting that the technology “enables independence and control over personal data while enabling financial inclusion for billions of unbanked customers.” Meanwhile, a full report accompanying the fund notes the growing demand for “decentralized digital ecosystems” among millennials in the wake of global shutdowns.

The launch of the fund comes as the world of traditional finance becomes increasingly intertwined with crypto. Earlier this week, Fidelity announced that it would let customers allocate Bitcoin to their 401(k) retirement funds.

BlackRock itself has also become more involved in the space of late, more recently announcing that it will manage the cash reserves of USDC, the $50 billion Circle-managed stablecoin that has become central in the world. DeFi and cryptocurrency ecosystem.

Disclosure: At the time of writing this article, the author of this article owned ETH and several other cryptocurrencies.

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Michael J. Birnbaum