By Alicia Maher
BlackRock has launched a new ETF and crypto assets are increasing momentum. But asset prices are still quite low in the space.
Expanding the Client-Base
BlackRock is the largest asset manager in the world and its blockchain ETF in Europe has kicked off. The firm plans to give the same leverage it has given to its American users to its Europe customers.
It was on the 29th of September that BlackRock first announced that it was going to launch its iShares Blockchain Tech. It is designed to keep track of the blockchain index on the New York Stock Exchange. The index is connected with 35 companies across the globe and it is listed with the ticker $BLKC on Euronext.
The Product Strategist at BlackRock for ETFs, Omar Moufti, said that the company believes blockchain digital asset technology will be increasingly important for its clients. This is inevitable as the scope of the technology’s use cases increases.
Moufti seems to have a determined and positive position on the relevance of cryptocurrencies too. BlackRock has had a progressive run in its engagement with the crypto-centered financial revolution.
BlackRock entered a collaboration with the crypto exchange Coinbase in August as it began to offer Bitcoin exposure to its institutional clients. It also enables its institutional clients in the US to invest in Bitcoin via a private trust which it launched recently. BlackRock has now stepped up by setting up a shop in Europe.
Opening Up to Cryptocurrencies
Blockchain and crypto enterprise exposure will be provided by iShares Blockchain tech in the future. It has been calculated that about 75% of the exposure the index gains will be offered by companies that have their primary engagements in blockchain activities.
This includes crypto miners and exchanges as well. Companies contributing to the blockchain system currently make up about a quarter of the index’s exposure.
Although before this phase, BlackRock had a pessimistic perspective about cryptocurrencies. The CEO, Larry Fink, 2017 said Bitcoin was a money laundering index and an indicator for money laundering businesses. The statement created a link between Bitcoin prices and money laundering activities.
However, the company’s position has changed due to the financial market realities and the demand of clients. Since it is focused on giving clients long-term financial benefits, BlackRock decided to pitch its tent on the chances of cryptocurrencies growing significantly in the long term.
October is filled with eager anticipations after a long bear market. Investors are hopeful of a positive change, especially a long bullish run.