Giant Asset Manager BlackRock Files for Blockchain ETF

BlackRock is the top asset management company in the world with an AUM evaluation of $10 trillion. The firm manages around $2.4 trillion in ETFs assets alone. The latest updates from the firm have revealed its plan to dabble in the cryptocurrency industry. iShares Blockchain and Tech ETF native to the BlackRock Group is planning to track the index of the NYSE FactSet Technologies Index.

The news was confirmed by a spokesperson of the asset management firm and from the official filing recently. The index plans to include all the major and viable crypto networks operating out of the USA and globally. 80% of the funds are going to go towards the stock indexes while 20% are set to allocate in derivatives like cash equivalents, swap contracts, futures, ETFs, and options.

According to the spokesperson for BlackRock, financial investors have been looking for a viable substitute for Bitcoin spot ETFs. At the time the closest option is Transformational Data Sharing ETFs called BLOK by Amplify Investments. The fund is currently valued at $1.1 billion and operating since 2018.

One important factor about the BlackRock crypto fund is that it will not invest actively or passively in any crypto assets or their derivatives. CFRA senior director, Todd Rosenbluth recently posted on Twitter that the official blockchain ETF filing by iShares is going to set a new trend in the cryptocurrency market and work as a flag bearer of fintech innovation among investors.

BlackRock revealed plans to invest in cash-based Bitcoin futures registered with CFTC through fund releases from MDLOX and BASIX last year. BlackRock CEO, Larry Fink told CNBC reporters in October 2021 that there is a potential for massive growth for the cryptocurrency community. However, he is not enthusiastic about the long-term standing of the industry.

During the mid-year income calls last year in June, Fink told his investors that digital asset markets can cement its position as a reliable investment vehicle in the future. He also added that his clients have not been submitting queries about crypto involvement in their portfolios.