Blackrock to Track Blockchain and Tech with new ETF
Amidst the current crypto market chaos, positive news appears to go unnoticed at present. The global financial markets remain focused on inflation and FED monetary policy, which has contributed to the crypto market sell-off.
Uncertainty brings opportunity, however, as the lines between mainstream and crypto continue to blur.
Earlier this month, we had reported Block Inc.’s (SQ2) listing on the Australian Stock Exchange (ASX). For the ASX, the 20th January listing was the first crypto-related listing. It wasn’t the best of starts, however, with negative sentiment towards cryptos leaving Block Inc. down 2.34% on its 2nd day of trading.
Block Inc. isn’t the first crypto-related listing, however. Other listed companies include:
- Coinbase Global Inc. (COIN), traded on the NASDAQ.
- Bit Mining Ltd (BTCM), traded on the New York Stock Exchange.
- HIVE Blockchain Technologies Ltd (HIVE), traded on the NASDAQ.
- Bitfarms Ltd (BITF), traded on the NASDAQ.
For mainstream trading platforms, exchanges are also getting in on the crypto act. This week, news hit the wires of Robinhood launching its crypto wallet beta program. While Robinhood users had previously been able to trade cryptos, the launch of the wallet will eventually mean that users can also deposit and withdraw cryptos. This was previously not possible, with investors able to only buy, hold and sell.
Blackrock Files for iShares Blockchain and Tech ETF
On Friday, Blackrock filed for the registration of the iShares Blockchain and Tech ETF. The ETF “seeks to track the investment results of an index composed of U.S and non-U.S companies that are involved in the development, innovation, and utilization of blockchain and crypto technologies”. The Fund will track the investment results of the NYSE FactSet Global Blockchain Technologies Index.
On Friday, the NYSE FactSet Global Blockchain Technologies Index slid by 10.32% to end the day at 172.33. Year-to-date, the Index was down by 24.15%
The move into the crypto ETF space is aligned with Blackrock’s apparent strategy on cryptos. According to reports over the summer of 2021, Blackrock had close to $400m invested in Bitcoin (BTC) mining stocks.