By Shelly Melancon (Switzerland)
The leading asset management firm recently launched a blockchain-based ETF to provide customers with unrestricted access to crypto and blockchain-focused companies without the need to own or operate a crypto wallet.
On April 27, the popular asset manager, with about $10 trillion in assets under its custody, announced the Blockchain and Tech ETF launches of its latest line of products.
The ETF, which is valued at $4.7 million, is reported to have no digital assets but instead provides tracking services targeting international companies involved in the crypto industry.
Composition of the ETF
The newly launched ETF comprises 41 different holdings, with the largest being the United States-based crypto exchange platform, Coinbase, which made up 11.45% of the total fund.
Marathon Digital Holdings is the second large holding after Coinbase. The prominent Bitcoin mining firm accounts for 11.19% of the funds, while Riot Blockchain Inc. has the most negligible holdings, with 10.41% of the total funds.
Additionally, the ETF has shown that it is ready for the future with more acquisitions on the way, owing to its enormous 9.15% ownership of the USD in circulation.
In the same vein, BlackRock is poised for more scale in the blockchain industry. It outlines the critical areas of interest the company considers worth the risk, going by the nature of the market and the prospects it offers.
Moreover, in a report, BlackRock highlights the areas of the crypto market that are constantly changing and the subsequent action needed to make inroads to keep up with the dynamic trend of the market.
The Focus is on Blockchain
BlackRock’s emphasis is on the blockchain industry, and the company is bullish on the long-term opportunities in the industry. According to BlackRock, more attention has been given to the prices of digital assets than any other areas of significant interest. In contrast, the value inherent in blockchain technology has not been adequately explored.
There is a broader opportunity to leverage blockchain technology to settle payments, contracts, and other forms of digital services that have not been taken into consideration by the majority of the service providers in the industry.
Furthermore, the company also disclosed that the coming on board of the central bank digital currencies (CBDCs) is a welcome development for the industry’s progress, with more than 87 countries currently developing their versions of the digital currency.
Meanwhile, institutional investors are now attracted to crypto ETF, which indicates the growing popularity of the new product.
The Spot Bitcoin ETF is now at the forefront of most as discussion about its development has been ongoing following a recent Nasdaq survey that showed that 72% of the 500 responses gotten from financial advisors show that they are more inclined to invest customers’ assets in a spot fund.
As ETFs continue to gain traction across the board, asset managers are now more likely to get involved with spot fund trading than ever before.
ETFs have proved to be the way forward for asset managers in handling clients’ funds.
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