BlackRock announces blockchain ETF for European clients

• The iShares Blockchain Technology UCITS ETF (BLKC). track NYSE’s FactSet Global Blockchain Technologies Capped Index.
• BLKC has an expense ratio of 0.5% and comprises 35 global companies within the crypto and blockchain space.

BlackRock has announced a new exchange traded fund (ETF) for the European market, targeting customers across the region with a blockchain technology fund dubbed the iShares Blockchain Technology UCITS ETF (BLKC).

The company’s latest ETF offering is a product that will allow customers exposure to companies whose activities involve the development, innovation, and deployment of crypto and blockchain technologies.

BLKC, which has a total expense ratio of 0.5% and will track NYSE’s FactSet Global Blockchain Technologies Capped Index, encompasses 35 global companies, BlackRock noted on Thursday.

Specifically, the ETF’s composition is of companies from both developed and emerging markets, and will see 75% of the exposure linked to companies primarily focused within the blockchain space – such as cryptocurrency miners and exchanges.

The other 25% exposure will be to companies that offer support services within the blockchain ecosystem, including payments platforms and semiconductor firms. The exposure will not involve direct investment into crypto.

BLKC is listed on Euronext.

Blockchain becomes ‘increasingly relevant’

Omar Moufti, the asset manager’s product strategist for thematic and sector ETFs, commented on the launch by noting that blockchain continues to gain momentum as more use cases develop. 

The trend has led to increased attention and demand from institutional clients keen to have an opportunity to invest in global companies in the industry. 

“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,” said Moufti.

BlackRock recently partnered with Coinbase to offer Bitcoin trading to its clients, and also launched a private trust targeting institutional clients.