What Spot ETF? Asset Manager BlackRock Files Blockchain Tech ETF


The world’s largest asset manager BlackRock has now filed for a new ETF. The crypto space has been characterized by ETF filings ever since the first Bitcoin Futures ETF made its debut on the trading markets. Since then, there have been more futures ETF filings surrounding bitcoin and ethereum, as well as spot ETF filings which are yet to be approved despite being an investor favorite.

Now, BlackRock has broken out of the mold by filing a completely different kind of ETF. Instead of clamoring with the rest of the market for a bitcoin spot ETF, the asset manager has gone with a blockchain tech ETF filing.

BlackRock Wants A Blockchain ETF

In an SEC filing that was submitted by the asset manager, BlackRock made known that it had submitted a filing for a blockchain and tech ETF. This ETF, called the iShares Blockchain Tech ETF, will track the NYSE FactSet Global Blockchain Technologies Index (NYFSBLC). This index is composed of a number of companies that are active in the “development, innovation and utilization of blockchain and crypto technologies,” the filing read.

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Although this ETF is focused on the crypto space and technologies associated with the industry, BlackRock does not intend to buy crypto or trade it directly. Instead, the asset manager will invest up to 80% of the ETF assets into stocks that are included in the NYFSBLC.

“Similar to shares of an index mutual fund, each share of the Fund represents an ownership interest in an underlying portfolio of securities and other instruments intended to track a market index,” BlackRock noted in the filing. “Ishares Blockchain and Tech 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.”

Taking A Stand With Blockchain

This is not the first that BlackRock had shown an interest in getting into the blockchain space. The asset manager’s exchange-traded fund and index investments lead had said in December that BlackRock has planned to file for a blockchain and tech ETF.

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BlackRock is easily the largest asset manager in the world. Its most recent financial report shows that the company currently has over $10 trillion in assets under management. Of this number, over 30%, $3.3 trillion are said to be in exchange-traded funds.

The investment firm has also managed to sidestep the onslaught that is currently being witnessed in the financial markets. Its assets under management remain high and its move into the blockchain space signifies that it sees great potential in the market despite the price dumps.

Featured image from GreenBiz, chart from TradingView.com

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