BlackRock Joins Institutional Giants With New Blockchain ETF
With a new ETF launched by BlackRock, crypto assets are gaining momentum.
BlackRock, the world’s largest asset manager, is launching a blockchain exchange-traded fund (ETF) in Europe. The company seeks to offer similar advantages as the ETF launched in America to its European institutional clients.
New Crypto ETF For European Markets
BlackRock announced on 29 September its launch of the iShares Blockchain Technology UCITS ET, which will track the New York Stock Exchange’s FactSet Global Blockchain Technologies Capped Index.
The index is linked to 35 companies around the world and listed on Euronext under the ticker $BLKC.
“We believe digital assets and blockchain technologies are going to become increasingly relevant for our clients as use cases develop in scope, scale, and complexity,” said Omar Moufti, BlackRock’s product strategist for thematic and sector ETFs.
The global asset manager seems to take a positive, determined stance on cryptocurrency. BlackRock has been rather proactive in engaging in the crypto-powered financial market revolution.
In early August, the company announced it collaborated with Coinbase to offer bitcoin transactions to its institutional clients. Additionally, it enables US institutional clients to invest in BTC through a newly launched private trust. Now, BlackRock sets up a blockchain ETF in Europe.
Exposure to blockchain enterprises and crypto businesses is going to be provided by the iShares Blockchain Technology UCITS ETF in the near future.
It is anticipated that 75% of the index’s exposure will come from companies whose primary business is functioning in a blockchain-related industry.
This encompasses cryptocurrency miners as well as exchanges. Companies that contribute to the blockchain ecosystem make up roughly 25% of the index’s total exposure.
Looking Up in The Crypto Space
Although prior to that, BlackRock held a more pessimistic outlook toward cryptocurrencies. In 2017, the Chief Executive Officer of the corporation, Larry Fink, referred to Bitcoin as an index of money laundering and a sign for operations related to money laundering.
This indicates that actions on the Bitcoin network and the price of Bitcoin have a strong correlation with the act of money laundering.
Nevertheless, BlackRock’s perspective has shifted as a result of changes brought about by the demands of the market and its clients. As a firm that is focused on providing customers with long-term financial benefits,
BlackRock places bets on the possibility that the cryptocurrency market will experience significant growth over the long run.
Financial Institutions Advocate For Clear Regulations
After a significant period of a bear market, October is a month that is eagerly anticipated. Investors are holding out hope that it will bring about a fresh positive change, specifically a bull run.
Recently, the chairman of the Commodity Futures Trading Commission (CFTC), Rostin Behnam, proposed facilitating the process of regulating bitcoin and other cryptocurrencies.
As long as the cryptocurrency market is subject to oversight, the director of the CFTC predicts that the price of bitcoin will continue to increase in the near future. Financial institutions will be encouraged to invest in cryptocurrency markets if clear regulations are implemented.
It’s the potential motivation behind the Senate Agriculture Committee’s decision to back the CFTC in its bid to become the first regulator of the bitcoin industry. In any event, Behnam voted in favor of the law that would authorize it to impose fees on organizations that it regulates.
After crypto regulations are put into place, the CFTC, which is going to be the principal regulator of crypto assets in the United States, anticipates a more promising future. In the event that this action is taken, institutions will rush to buy Bitcoin, which would lead to an increase in the price of Bitcoin.
On the other hand, many investors are just sitting tight and waiting for the market to improve. According to the CFTC, this is an absolutely necessary condition. We can only hope that this forecast is accurate.