BlackRock Plans to Launch ETF Based on Blockchain and Cryptocurrency Companies
2 min readBlackRock, one of the world’s leading asset management companies, has submitted to the United States Securities and Exchange Commission, the SEC, an application to launch an exchange-traded fund (ETF) focused on blockchain technology and cryptocurrencies.
The idea is that the financial instrument “iShares Blockchain and Tech ETF” track the New York Stock Exchange (NYSE) FactSet Global Blockchain Technologies index.
BlackRock Crypto companies ETF
According to the documents, the ETF will include mining, infrastructure and cryptocurrency trading companies. In addition, it will feature shares of blockchain companies and chipmakers.
According to BlackRock, the company plans to invest up to 80% of the financial instrument’s assets in stocks included in the NYSE FactSet Global Blockchain Technologies index. And the remaining funds would be allocated to equity-based futures, options and swap contracts.
BlackRock has clearly highlighted that it will not invest directly or indirectly in cryptocurrencies, or through cryptocurrency derivatives.
“The NYSE FactSet Global Blockchain Technologies Index is a float-adjusted market cap weighted equity index that measures the performance of equity securities issued by US and non-US companies that are involved in the development, innovation and utilization of blockchain and cryptocurrency” .
As the records point out, the product will be similar to shares in an index mutual fund. That is, each share of the financial instrument represents a stake in an underlying portfolio of bonds and other instruments intended to track a market index.
BlackRock has a total of $10 trillion in assets under management, according to the latest report shared by the company.
The head of BlackRock’s ETF business, Salim Ramji, told Bloomberg in December that a blockchain fund was on the way.
The executive also stated that the company would maintain its cryptocurrency funds with high standards of liquidity and transparency.
“As the regulatory environment becomes clearer and as the underlying liquidity dynamics of this market become more satisfying to us, some of these dynamics will work in our favor,” he added.
