Amid a $1 trillion downturn, BlackRock Inc. is foraying into the world of digital currency-flavored exchange-traded funds.
As per a filing with the US Securities and Exchange Commission on Friday, the iShares Blockchain and Tech ETF will invest in firms engaged in creating, innovating, and using blockchain and crypto innovations. It would be the first crypto-adjacent fund in the world’s biggest ETF provider lineup if it were to be established.
On a December edition of Bloomberg’s “Trillions” podcast, Salim Ramji, the head of BlackRock’s global ETF division, revealed that a themed blockchain fund was in the works. As per Bloomberg Intelligence statistics, the number of ETFs tracking crypto-linked stocks has increased to 15 in recent years, despite the SEC’s refusal to approve a spot Bitcoin ETF.
Ramji said that the corporation would hold its crypto funds to high liquidity and transparency requirements in December. “Some of those dynamics will work in our favor as the regulatory environment becomes clearer, and as the underlying liquidity dynamics of that market become more to our satisfaction,” he said.
On Friday, Bitcoin briefly dipped below $37,000 per coin, bringing the overall decline from November’s peaks to roughly 46%. This hurt crypto-related stocks and ETFs, with the $1 billion Amplify Transformational Data Sharing ETF (ticker BLOK) down 8% on Friday.
The BlackRock ETF’s ticker and management fees have yet to be announced.
