Blockchain

BlackRock Launches a New Blockchain ETF

The product is a result of increased demand for crypto-focused assets.

Blockchain

BlackRock Launches a New Blockchain ETF

The product is a result of increased demand for crypto-focused assets.

On Wednesday, April 27, BlackRock announced the launch of its new iShares Blockchain and Tech ETF (IBLC), the financial product offers exposure to investors in leaders in fintech and information tech associated with the blockchain.

Investment vehicles like this are becoming more popular as an alternative for those who are either unable or unwilling to have direct exposure to cryptocurrency. BlackRock identifies in a report that “Millennials and EM consumers are now, and will be for several decades to come, essential drivers of the global economy. Consequently, these groups’ unique needs and preferences, such as early adoption of decentralized finance and prioritization of sustainable products, may be set to surge.”

The report touches on the fact that with blockchain technology, consumers are “acquiring independence not historically afforded by marketplace dynamics.” This is accredited to crypto-assets providing financial inclusion for individuals who are still unbanked as well as control over the $150B USD personal data market.

BlackRock defines blockchain as a protocol that is made up of three main components: Peer-to-peer transactions, digital scarcity, and immutable records. The investment management corporation states that “These features have wide-ranging implications for the protection, monetization, and verification of anything digital – which is incalculably valuable to the two billion people worldwide who are expected to buy goods and services online.”

Of the 34 assets in the new IBLC ETF, the most notable include Coinbase, Marathon Digital, Riot Blockchain, and USDC. These four assets make up over 40% of the fund, which is currently valued at roughly $4.7M USD.

Elsewhere in DeFi, Fidelity launches industry-first 401k Bitcoin offering in partnership with MicroStrategy.

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