Blackrock Announces New Blockchain ETF For Investors Looking For Crypto Exposure

By Kevin • May 2, 2022 10:43 am • Comments

Blackrock just announced the launch of a new blockchain ETF which is aimed at giving investors exposure to the crypto markets without directly having to own the digital assets.

The ticker symbol for this is IBLC and has been added to the iShares product line so that all clients of the institution have access to it.

This new announcement could mean that a significant amount of volume could start flowing into the industry given that Blackrock currently manages around $10 trillion in assets.

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The way this blockchain ETF works is that it is made of shares of crypto or blockchain firms that either do business directly related to crypto or even have crypto holdings themselves.

As of right now, this is the most convenient way for investors to gain access to crypto exposure via the traditional securities markets until digital asset spot ETFs are finally approved by the SEC in the future.

Bollyinside.com reports:

BlackRock has announced the creation of a blockchain-focused exchange-traded fund (ETF) that allows investors to gain exposure to the crypto and blockchain industries without having to purchase digital assets directly.

The $4.7 million ETF does not own cryptocurrencies or digital assets directly, but rather follows a number of foreign companies participating in the sector.

The ETF now has a solid 9.15 percent USD cash position, indicating that it is ready to make future buys.

The ETF is made up of 41 different assets, with Coinbase, a cryptocurrency exchange based in the United States, accounting for 11.45% of the total. Marathon Digital Holdings, with 11.19 percent of the total holdings, and Riot Blockchain Inc., with 10.41 percent, are the next largest Bitcoin (BTC) miners.

Blackrock has also recently released a report that reveals the top 3 market segments that are transforming at rapid rates with crypto being one of them.

The firm has finally revealed that it is bullish on the industry despite giving negative criticism in many previous years.

So far, the company believes that the current prices have not fully reflected the potential value of blockchain technology yet.

The fact that over 80 countries right now are already exploring the use of CDBCs is the most obvious testament to the potential of how the tech would disrupt governments and institutions.

Bitcoin.com concludes:

At the time of writing, the new blockchain ETF’s top holdings include Coinbase Global, Marathon Digital Holdings, Riot Blockchain, USD Cash, Galaxy Digital Holdings, International Business Machines, Hive Blockchain Technologies, Bitfarms, Paypal Holdings, Canaan, Nvidia, Advanced Micro Devices, Block Inc., Hut Mining, Argo Blockchain, and Cleanspark.

Blackrock noted that its blockchain ETF does not invest directly in cryptocurrencies.

The world’s largest asset manager has been looking into offering clients exposure to the crypto sector.

“Blackrock is studying digital currencies, stablecoins, and the underlying technologies to understand how they can help us serve our clients,” CEO Larry Fink said in March.

A number of digital assets in particular already provide an all-in-one solution that can transform things at record speed such as XRP which already provides a complete framework that allows countries to build a CDBC on the XRP Ledger.

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