BlackRock Lists Blockchain ETF Days After Similar Fidelity Launch

World’s largest asset manager highlights blockchain tech in new paper about “megatrends”

share

key takeaways

  • Leveraging blockchain technology for payments, contracts and consumption represents crypto’s “broader opportunity,” company says
  • Launch comes after Fidelity listed its crypto and metaverse ETFs last week

BlackRock has launched its blockchain ETF and labeled the segment a “megatrend” just days after competitor Fidelity brought to market a similar fund. 

The world’s largest asset manager, which manages roughly $10 trillion in assets, added the iShares Blockchain and Tech ETF (IBLC) to its megatrends product suite on Wednesday.

BlackRock’s thematic platform alone comprises 43 products with more than $50 billion in assets under management.

“The expansion of our megatrends line-up today reflects the power of the millennial and rise of the self-directed investor, whose buying habits have reshaped mainstream consumer behaviors, and in turn, the companies in which they invest,” Rachel Aguirre, BlackRock’s head of US iShares product, said in a statement.

IBLC, which the firm filed for in January, seeks exposure to global companies at the forefront of the “development, innovation and utilization” of blockchain and crypto technologies, according to the company. It does not invest in cryptocurrencies directly. 

The new blockchain fund launched about a week after Fidelity listed its Crypto Industry and Digital Payments ETF (FDIG) and its Metaverse ETF (FMET). Both funds carry an expense ratio of 39 basis points. 

The BlackRock product, which costs 47 basis points, currently has 34 holdings. Its largest allocations are to crypto exchange Coinbase, as well as bitcoin miners Marathon Digital and Riot Blockchain, which each account for more than 10% of the portfolio.

Other top holdings include Galaxy Digital, IBM, Hive Blockchain Technologies, Bitfarms and PayPal. 

In tandem with the ETF launch, BlackRock published a paper highlighting three areas experiencing significant permanent changes: new consumer, industrial renaissance and medical breakthroughs.

“While most of the market attention has focused on the price and volatility of cryptocurrencies themselves, we believe the broader opportunity — leveraging blockchain technology for payments, contracts and consumption broadly — has not yet been priced in,” the paper states. 

Cryptoassets offer financial inclusion to the unbanked and allow users to regain control over the $150 billion annual market for their personal data, according to the paper. BlackRock’s research also highlights central bank digital currencies (CBDCs), noting that 87 countries are currently exploring them.

A BlackRock spokesperson declined to comment further on its plans within the crypto space. 

Larry Fink, the company’s CEO, said in a shareholder letter last month that the war in Ukraine could accelerate the adoption of digital currency.

BlackRock and Fidelity participated in a funding round for peer-to-peer payments technology company Circle earlier this month.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

HYATT REGENCY SALT LAKE CITY

TUES, OCT. 8, 2024

Guided by the expertise of Blockworks Research Analysts team, this one day event will feature senior leaders, entrepreneurs, and developers from across the crypto industry. Attendees will have the opportunity to participate in an immersive experience to explore the latest trends, […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

avaxcover.png

Research

The Avalanche Network is well on its way to becoming the best platform to build high-performance blockchains that can seamlessly interact with each other, and the strong focus on performant and scalable blockchains will likely be Avalanche’s competitive advantage.

article-image

Assets under management in global crypto ETPs broke the $100 billion mark for the first time amid BTC price increases and persistent inflows

article-image

Bitcoin and ether stay flat post-selloff as SOL fans brace for a new all-time high

article-image

For the first time ever, Bitcoin’s halving comes right after a new all-time high

article-image

The company unveiled its research platform upgrades during the first day of Blockworks’ Digital Asset Summit in London

article-image

With this launch, Blockworks Research consolidates hundreds of features into one subscription model

article-image

After the capital infusion led by Jump Crypto, Pantera Capital and Lightspeed Faction, Figure also seeks to offer a registered security alternative to stablecoins