• BlackRock, a $10 trillion asset manager, has filed for a blockchain-focused ETF

  • According to a Jan. 21 filing with the U.S. Securities and Exchange Commission, BlackRock Inc., the world’s largest asset management firm, has applied for an exchange-traded fund (ETF) focusing on blockchain technology (SEC).

    The iShares Blockchain and Tech ETF monitors the investment outcomes of an index comprised of companies involved in the “creation, invention, and application of blockchain and crypto technologies” in the United States and worldwide, according to the fund’s description.

    The fund is designed to track the NYSE FactSet Global Blockchain Technologies Index. According to BlackRock, up to 80% of the ETF assets will be invested in equities from the index. The remaining funds would be used to fund equities-based futures, options, and swap contracts. Furthermore, the fund will not invest in cryptocurrency, either directly or indirectly through crypto asset derivatives.

    “Each share of the Fund reflects an ownership interest in an underlying portfolio of securities and other instruments intended to mirror a market index, similar to shares of an index mutual fund,” according to the application.

    BlackRock is unaffected by the market downturn.

    The announcement comes as cryptocurrency markets have plummeted, with bitcoin down 20% to $34,600 since January 20. According to the firm’s most recent financial reports, BlackRock had $10 trillion in assets under management by the end of 2021. The total amount managed by ETFs was $3.3 trillion.

    The company announced in January of last year that its Strategic Income Opportunities Fund (BASIX) and Global Allocation Fund (MDLOX) could invest in cash-settled bitcoin futures trading on commodity exchanges regulated with the Commodity Futures Trading Commission (CFTC).

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