Black Rock launches its first blockchain-based ETF

Wednesday, Black Rock, the world’s largest asset manager, has begun offering an ETF with exposure to blockchain, tech and crypto through its iShares Blockchain and Tech ETF (IBLC).

Black Rock and the first Blockchain ETF

Black Rock, which has an unimaginable turnover ($10 trillion by the most recent estimates) has been studying the world of Blockchain and cryptocurrencies for some time. 

Over the years, virtual currencies have become increasingly popular, driven by their reliability due to a solid and secure system in terms of privacy and traceability of transactions. 

The anonymity of transactions and investors combined with an efficient system have made inroads to the point where they have become an asset that can no longer be ignored by any financial operator. The American investment bank is no exception. 

As early as December, the company’s CEO made statements indicating a move into this world, and in January, Black Rock submitted an application for a new product to the SEC. 

The product was approved and clients can now enter this world without necessarily having direct exposure to cryptocurrencies. 

Exposure of the ETF

The product is 11.45% allocated on Coinbase, the largest crypto exchange platform in America and one of the largest in the world.

The rest of the product shows holdings in Marathon Digital Holdings (a crypto mining company) for 11.19%, Riot for 10.41% and PayPal, interesting for being one of the companies pioneering the field of crypto with dedicated services two years ago. 

On its website, the American business company reports:

“Blockchain technology enables the independence and control of personal data while allowing the financial inclusion of billions of non-bank consumers”.

Yet the New York-based company is not alone in showing interest in this world, indeed it is just one in a larger galaxy that is continually expanding. 

Business firm Fidelity, for example, has recently launched two similar ETFs, the first to track cryptocurrencies without direct investment while the second focused more on the metaverse and web3. 

This in particular is the direction in which social and the internet are evolving and will evolve in the future and on which many companies including Lego, Sony, Amazon, Apple, Microsoft and Meta are betting heavily. 

The iShare ETF is trading at USD 23.60, down 0.18% since its debut, but this is normal in a period of high volatility and on a day when the main altcoins are also in the negative zone. 

Finally, it is recent news that Black Rock has taken a strong interest in USDC. 

USDC is the stablecoin issued by Circle and the investment firm is keen to become the primary asset manager of USDC’s cash reserves.