BlackRock unveils blockchain-focused ETF in Europe

The instrument does not focus on cryptocurrencies directly, but rather on companies that make the crypto ecosystem.

Negocios September 30
Kimberly Rodriguez Medina

The American investment multinational, BlackRock, has issued an exchange-traded fund (ETF) based on the blockchain ecosystem. The financial instrument will be available in Europe, whose clients will now be able to have direct exposure to a set of companies involved in "the development, innovation and use" of blockchain technologies. 

“Blockchain has already given rise to decentralized payment systems, underlying a notional US$1tn market cap[1] for cryptocurrencies and digital assets, and the distributed ledger technology continues to offer myriad possibilities for efficiencies in the capital markets”, BlackRock. 

The ETF in question, iShares Blockchain Technology UCITS (BLKC), will be revolver around 35 companies focused on the development of blockchain technology. Among the selected companies, there are some related to crypto mining and exchanges making up 75% of the fund in addition to payment companies and semiconductors, making up the remaining 25%. "The exhibition is at the forefront of innovation, paving the future of blockchain," says BlackRock. 

This financial instrument is not focused on cryptocurrencies, but rather on blockchain technology. The interest derives from the broad development of the sector, where trading volumes have increased five times per year. The blockchain space has gone from having a daily volume of $10 billion in 2017 to an average of $53 billion a day this year. 

“The continued proliferation of blockchain technology underscores its potential across many industries. The exposure offered by the iShares Blockchain Technology UCITS ETF will allow our clients the opportunity to engage with global companies leading the development of the emerging blockchain ecosystem.” 

The fund will be listed on Euronext, with a total expense ratio of 0.50%. The product strategist for ETF, Omar Moufti, assures that this type of asset coupled with blockchain technology will have more and more relevance for its users, which encourages the creation of this type of product. As the sector increases in “scope, scale and complexity”, the company will look to offer new financial instruments. 

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