The asset management behemoth, [BlackRock Inc](https://www.blackrock.com/corporate), has rolled out a blockchain technology exchange-traded fund ([ETF](/news/article/crypto-etfs)). The firm has extended its services to European consumers, giving traditional markets more exposure to investing in blockchain companies. 

The latest BlackRock ETF has been named [iShares Blockchain Technology UCITS ETF (BLKC)](https://www.ishares.com/ch/institutional/en/products/328618/ishares-blockchain-technology-ucits-etf). The product was introduced on September 27 and consists of 50 holdings. Among them, 35 companies are blockchain-related, while others firms aid the blockchain industry. 

## BlackRock ETF offering EU investors exposure to blockchain

Previously, the Blackrock introduced a similar ETF product in the US. Now, it is seeking expansion in European market. 

The firm's product strategist for thematic and sector ETFs, Omar Moufti, has said that the new offering will allow customers to interact with leading companies in the distributed ledger ecosystem. 

Moufti further pointed out that these technologies will "become increasingly relevant for our clients as use cases develop in scope, scale and complexity."

## Blockchain BlackRock ETF holdings

There are 50 holdings, including around 75% of crypto exchanges and mining firms. On the other hand, firms supporting the blockchains make up the remaining 25%. Moreover, this new BlackRock ETF does not deal in crypto investments directly.

The top five holdings are [Coinbase](/news/article/blackrock-crypto) (13.20%), the fintech firm Block (11.40%), Riot (10.50%), Marathon Digital Holdings (11.13%) and USD cash (13.00%).

Other companies the new BlackRock ETF invests in include twenty-three IT firms, six financial, one communication, and one industrial company. 

## A Metaverse ETF is in the works

Bloomberg recently [reported](https://www.bloomberg.com/news/articles/2022-09-29/blackrock-plans-another-crypto-etf-after-feeble-iblc-debut#xj4y7vzkg) that BlackRock plans to introduce a unique exchange-traded fund related to Metaverse, which may include virtual or social media platforms. Its ticker and fees are yet to be confirmed. 

Earlier in August, the world's largest asset manager made its way into the crypto space by offering its institutional clients [Bitcoin spot](/news/article/blackrock-investing) exposure. Now, it is working on several other products related to digital assets to expand in the market. 



New BlackRock ETF invest in 35 crypto-related companies

One of the largest asset management companies [Blackrock Inc](https://www.blackrock.com/corporate). has recently entered the crypto market. It has introduced a private trust that allows its institutional clients in the US to get exposure to spot Bitcoin. Moreover, the news about Blackrock investing in [Bitcoin](/coins/btc) came through after [partnering up with Coinbase](/news/article/blackrock-crypto) for crypto custody and trading services. 

## Blackrock investing proves beneficial for Bitcoin

Blackrock investing in the crypto market has been quite constructive for Bitcoin. On 11 August, its price reached almost $25,000. Though its price has slid to $23,987, the move has boosted investors’ confidence. The overall market sentiment has also been bullish. 

Many known figures in the crypto space also welcome the Blackrock initiatives as a landmark for the market. William Clemente, the lead analyst for Blockware, called it the ‘[most bullish news](https://twitter.com/WClementeIII/status/1557723939366895617)’ for Bitcoin hodlers. He pointed out that it would ensure security for the investors. 

The company itself has also changed its stance on cryptocurrencies. Five years back, its CEO, Fink Larry, labelled Bitcoin as a money laundering index. However, now Blackrock is investing in a BTC product and a crypto trading services as well. As per the statement from the company, the interest from institutional clients in crypto has inspired them to enter the space. 

## Other asset managers in the crypto market

Though Blackrock investing in digital asset class services has been the most impactful, several other players are entering this volatile market. Earlier, Charles Schwab’s asset management arm also invested in the market. It introduced an exchange-traded fund (ETF) for the institutions linked with cryptocurrencies. With the STCE ticker, this ETF was introduced on the 4th of August 2022 on the New York Stock Exchange for trading.

On the other hand, the UK giant, Abrdn, is also exploring cryptocurrencies. This week, FTSE listed Abrdn bought a stake in the exchange Archax, a UK-regulated digital tokens and assets exchange. 



Blackrock investing strengthens crypto’s position

Institutional investors will now be able to manage and trade Bitcoin through Coinbase Global Inc.'s partnership with BlackRock Inc., bringing the world's largest asset manager into an industry ravaged by dropping prices and regulatory investigations.

In New York City, Coinbase jumped 15% to $92.61 at 1:20 pm. For the largest US crypto-trading platform, whose shares had lost more than two-thirds of their value this year by Wednesday, the deal with BlackRock brings some comfort.

According to a statement released Thursday, BlackRock's Aladdin investment-management system would be able to monitor its clients' exposure to Bitcoin and other portfolio assets like equities and bonds and assist financing and trading on the Coinbase exchange. In the beginning, "Bitcoin will be the emphasis" of the partnership with Coinbase, the largest US cryptocurrency trading platform, BlackRock said.

## Why BlackRock chose Coinbase as their crypto partner

Even after this year's crisis in crypto assets, BlackRock's action extends Wall Street's traditional financial players' involvement in crypto and associated technology. As a result of the [collapse of the Terra ecosystem](/news/article/terra-luna-collapse) and hedge fund Three Arrows Capital, questions have arisen regarding the stability of the market and heightened regulatory monitoring.

It is being investigated by the US Securities and Exchange Commission (SEC) if Coinbase allowed Americans to exchange digital assets that should have been classified as securities.

Because of Coinbase's size and prominence in the market, as well as its involvement in trading, custody, prime brokerage, and reporting, BlackRock decided to work with them. Both companies' customers will be able to use the services.

According to an analyst at Oppenheimer & Co. who has the equivalent of a "buy" rating on Coinbase shares, the regulatory risks from the cooperation are manageable because it starts with Bitcoin rather than other digital assets.

Lau said in a phone interview that the alliance "validates the future of blockchain and digital assets and also validates Coinbase's credibility." "It's a huge win for the industry and Coinbase," says a spokesperson.

According to an analyst at [Oppenheimer & Co](https://www.bloomberg.com/news/articles/2022-08-04/blackrock-teams-up-with-coinbase-in-crypto-market-expansion). who has the equivalent of a "buy" rating on Coinbase shares, the regulatory risks from the cooperation are manageable because it starts with Bitcoin rather than other digital assets. This news makes sophisticated investors more comfortable with the crypto market.

Coinbase reported that institutional investors made up nearly three-quarters of the first quarter's $309 billion in trading volume. There are hedge funds, corporate treasuries, and asset managers on Coinbase's client list.

The agreement is the next logical step in BlackRock's plan to increase its digital asset holdings. Stablecoins and digital assets are becoming increasingly important, according to CEO Larry Fink, who stated this in March.



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