BlackRock Launches Metaverse ETF Amid Market Downturn
BlackRock is taking a big bet in the crypto market again with the launch of a Metaverse exchange-traded fund (ETF) despite declining market prospects.
BlackRock introduces the Metaverse ETF
According to reports, BlackRock has unveiled the iShares Future Metaverse Tech and Communications ETF. The new product is targeted at companies with exposure to the Metaverse. However, the largest ETF issuer has yet to disclose the fees and the scheduled release date for the ETF.
Meanwhile, the new Metaverse ETF will include other companies offering products and services to virtual platforms, social media, and others.
Moreover, the launch happened when there were few activities in the virtual ecosystem.
According to Todd Sohn, an ETF strategist, and as quoted by Bloomberg:
“Interest in the Metaverse has waned like other blockchain products.” “The long-term investment idea is spot on. “However, competition in the space is rife.”
Dive into Crypto
BlackRock has, since last year, begun its steady journey into the cryptocurrency industry. It aims to leverage the increasing popularity of digital currencies to diversify its portfolio.
At the start of the week, the ETF issuer announced the launch of a crypto ETF for Europe’s market. The company was undeterred by the unclear regulatory guidelines in Europe. The yet-to-be implemented markets in crypto asset (MiCA) regulations have left an air of uncertainty in Europe’s crypto space.
Furthermore, the iShares Blockchain Technology UCITS ETF is an extension of the blockchain ETF launched in April 2022. Interestingly, the blockchain ETF attracted less excitement from investors after its launch. In the meantime, the net inflows into the ETF stand at a modest $6 million.
BlackRock is currently making strategic deals with other players in the crypto ecosystem. In early August, the firm partnered with the U.S.-based Coinbase to provide crypto exposure to its institutional customers.
Despite the current market correction, BlackRock is bracing itself for the future bull run in the crypto market.
Is BlackRock’s Crypto Investment Worth It?
Following its announcement in July that it was setting up a Spot Bitcoin Trust, BlackRock joined the league of other traditional investment giants leaping into crypto.
However, there is a perceived notion that the firm went into crypto trading at the wrong time. This is because the crypto market bloodbath was still in force when BlackRock made such an ambitious move.
The move supports the struggling Bitcoin as institutional players plunge resources into creating BTC-based products. The move signals a shift from the previous sentiments of BlackRock’s CEO, Larry Fink.
Fink has in 2017 labelled Bitcoin a money laundering scheme. However, some industry players were not surprised at BlackRock’s sudden backtrack on its earlier stance. Traditional investment heavyweights like JP Morgan and Goldman Sachs have echoed similar sentiments.
Many critics of Bitcoin are beginning to see how the asset can shape the financial landscape. However, others continue to hold their noses to the possibility of developing Bitcoin-based financial products for their markets.
Skepticism about BlackRock’s intention still abounds. Still, only time will reveal the success of its Spot Bitcoin Trust.
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