BlackRock Grows Its Thematic Range With Blockchain ETF Launch

The rollout is a further signal of the asset manager’s interest in the digital assets industry.

Reviewed by: Tom Eckett
Edited by: Tom Eckett

LONDON ­­­− BlackRock has expanded its thematic range with the launch of a blockchain equities ETF.

The iShares Blockchain Technology UCITS ETF (BLKC) is listed on Euronext Amsterdam with a total expense ratio (TER) of 0.50%.

BLKC will track the NYSE FactSet Global Blockchain Technologies Capped index which offers exposure to 35 developed and emerging market companies involved in the digital assets industry.

The ETF has 75% exposure to companies whose primary business is related to blockchain such as crypto miners and exchanges 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 at BlackRock, 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.”

The launch is a further signal of the world's largest asset manager’s interest in the digital assets industry.

In August, BlackRock partnered with crypto exchange Coinbase to offer its institutional investors access to bitcoin through trading and custody services and also has launched a bitcoin trust.

However, the firm is yet to launch a crypto exchange-traded product (ETP).

The firm has a significant range thematic ETF range in Europe. In June, it launched a digital entertainment and education ETF, the iShares Digital Entertainment and Education UCITS ETF (PLAY).


[Editor’s note: This article originally appeared on ETF Stream]

Tom Eckett is the editor of ETF Stream, joining as a senior writer in March 2019. He started his career at Investment Week in August 2016 as an asset management correspondent covering ETFs.