Blockchain ETF launched by BlackRock for European customers

BlackRock has announced an exchange-traded fund (ETF) called the iShares Blockchain Technology for the European market.

A new ETF offering from the company is designed to provide customers with exposure to companies involved in developing, innovating, and deploying cryptocurrency and blockchain technology.

The BlackRock Global Blockchain Technologies Capped Index, which tracks NYSE’s FactSet Global Blockchain Technologies Index, encompasses 35 global companies, BlackRock announced on Thursday.

As part of its composition, the ETF includes companies from both developed and emerging markets, and 75% of its exposure is linked to companies focused on blockchains – such as cryptocurrency miners and exchanges.

The other 25% of exposure will be to companies offering support services within the blockchain ecosystem, including payment platforms and semiconductor companies. Direct investments in crypto will not be part of the strategy.

Blockchain becomes ‘increasingly relevant

According to Omar Moufti, asset manager’s product strategist for thematic and sector ETFs, blockchain’s momentum continues to grow as more applications come into existence. There has been an increase in institutional interest and demand for global investment opportunities in the industry due to the trend.

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