BlackRock launched an exchange traded fund (ETF)

Blockchain-ETF is based on the NYSE FactSet Global Blockchain Technologies index, which offers exposure to 35 companies involved in the digital assets industry. It trades on the exchange with the ticker symbol BLKC. The ETF has 75% exposure to companies whose primary business is related to blockchain, while the remaining 25% is exposed to companies which support the blockchain ecosystem such as payments and semiconductor companies. BLKC will not directly invest in cryptocurrencies.

Omar Moufti, product strategist for thematic and sector ETFs, said: 

‘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. The continued proliferation of blockchain technology underscores its potential across many industries. The exposure offered by BLKC will allow investors the opportunity to engage with global companies leading the development of the emerging blockchain ecosystem.”

Thus, the asset management giant tries to meet the growing demand for cryptocurrency investment as the industry expands, creating more DeFi products and increasing the market capitalization of digital assets.

The average crypto daily trading volume increased from $10 billion at the end of 2017 to $53 billion as of August 31, 2022.

BlackRock introduces spot bitcoin private trust for US institutional clients in anticipation of the launch of blockchain-ETF. The trust aims to follow the performance of crypto. 

Shortly before that, BlackRock partnered with crypto exchange Coinbase to offer its institutional investors access to Bitcoin through trading, custody services, prime brokerage and also reporting using Coinbase Prime. Users can also manage their BTC and analyze risks using the BlackRock Aladdin software package.

US fintech firm Circle has entered an agreement for a $400 million funding round with BlackRock in April 2022. Since then, the investment giant has been managing the fiat reserves of the USDC stablecoin launched by Circle.

In 2021, BlackRock added Bitcoin futures to the list of derivatives available for investment by its two funds. It happened after  Larry Fink, CEO of BlackRock, expressed his optimism regarding the future of Bitcoin. He shared his opinion that the asset can replace gold, but with a caveat to its growing popularity, which affects the US dollar.

Fink previously treated Bitcoin as a speculative tool and money laundering method.