BlackRock Launches A Blockchain ETF For European Investors

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The explosion of investment products in the digital assets ecosystem and on blockchain networks is paving the way for the development of new investment strategies for participants.

BlackRock Targets European Customers with New Product

Investment giant BlackRock seeks to offer European investors exposure to investment opportunities in the blockchain industry. 

By establishing an exchange-traded fund (ETF), BlackRock will offer customers access to firms that provide services in the blockchain and cryptocurrency space.

Moreover, the investment firm announced on 29 September that it had launched iShares Blockchain Technology UCITS ETF (BLKC). The new product replicates the NYSE FactSet Global Blockchain Technologies Capped Index.

BLKC is made up of 35 international corporations from both developed and developing economies. It has 75% exposure to blockchain-related companies, like cryptocurrency exchanges and miners. In addition, it also has 25% exposure to blockchain-related organizations, such as payment and semiconductor enterprises.

According to the ETF Product Strategist at BlackRock, Omar Moufti:

“BlackRock believes that as use cases grow in scope, scale, and complexity, digital assets and blockchain technologies will become more useful to its clients. The ongoing spread of blockchain technology highlights its potential across a wide range of industries.”

Moreover, Moufti added that the BLKV offers exposure to clients, enabling them to interact with other global firms and develop disruptive innovations.

The new development will enhance blockchain efficiency amid increased digital asset adoption. It will also offer opportunities for scaling operational efficiency in the digital financial space. BlackRock penned a partnership with Coinbase last month to facilitate crypto transactions for institutional investors holding assets on Coinbase. 

CFTC Chair Confident in Bitcoin Rally

Amid the broad applications of cryptocurrency, there have been calls for effective regulations of the industry. However, the regulatory body best suited to manage the activities in the sector is a topic of debate among industry players. 

Questions about which agency will be saddled with regulating the nascent crypto industry have been asked. The two contenders for this role are the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). 

In his bid to sway the opinions of the crypto community, CFTC chair Rostin Behnam believes that his commission is the best suited for overseeing the crypto space.

Behnam added that placing crypto regulations under the purview of the CFTC might trigger a price uptrend of crypto assets.

The downtrend in the crypto market partly boils down to regulations. And with a clear regulatory framework, corporate investors will have the guarantee and motivation to make a move.

Moreover, the U.S. The Senate Committee on Agriculture proposed a bill to make the CFTC the regulatory body for the crypto spot market. This would ensure that digital currencies like Bitcoin would be under the commission’s jurisdiction.

For its part, the SEC is also staking its claim on becoming the primary regulator of the digital asset ecosystem. 

Meanwhile, it will be interesting to see how the two agencies will convince the crypto community to give them a nod for the role.

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