The world’s largest wealth manager now has a crypto ETF – BTC Direct

Earlier this month, news broke that BlackRock, the world’s largest asset manager, is investigating the crypto market. Exactly two weeks later we see the first results.

Opportunities for institutional investors

The US investment firm is launching a new ETF called iShares, an exchange-traded fund with a focus on blockchain technology, cryptocurrencies, and technology companies. It is the first crypto-ETF from the asset manager managing a portfolio of around €10 billion in total.

This means that BlackRock clients, including many large institutional investors, have the opportunity to invest in the crypto industry. Please note: this does not refer to direct investments in assets such as bitcoin and ethereum, but in shares of crypto-related companies. BlackRock applied for the fund with the US Securities and Exchange Commission (SEC) earlier this year.

What companies are in the basket?

An ETF can best be viewed as a basket of different companies or assets. BlackRock announces that the fund consists of 11.45 percent of Coinbase, the world’s largest publicly traded cryptocurrency exchange. Other companies in the portfolio include bitcoin miners Marathan Digital Holdings and Riot Blockchain and payment giant PayPal.

The fund’s website writes about the huge potential of blockchain technology and cryptocurrencies, among other things. BlackRock notes, among other things, that blockchain technology makes it possible to independently store personal data and provide financial services to billions of unbanked people.

Additionally, he writes in a report on the website about the growing demand for decentralized digital ecosystems among millennials as a result of global lockdowns. Following BlackRock’s earlier investment in Circle, this is the next big thing in the crypto industry for the world’s largest asset manager.

The traditional financial world dives into cryptocurrencies

BlackRock is certainly not the only major fund manager to enter the industry with the new crypto ETF. Fidelity also announced earlier this week that it wants to add bitcoin as an option to its clients’ pensions. Interestingly, Fidelity manages the pensions of more than 20 million people in the United States, who will soon be able to access bitcoin.

Fidelity’s Dave Gray indicates that the demand for bitcoin in retirement plans is only increasing. For buying bitcoin from Fidelity, customers will soon pay a commission of 0.9 percent and it will be possible to save up to 20 percent of the pension in bitcoin.

ministry cares

Not everyone is happy with Fidelity’s move, because the US Department of Labor and Labor warned of the dangers last month. †[…] The Department is deeply concerned about the wisdom of a fiduciary’s decisions to expose 401(k) plan participants to direct investment in cryptocurrencies,” the US Department of Labor and Labor said.

In addition to the new crypto ETF, BlackRock is also an investor in Circle and will manage a larger share of USDC reserves in the future. USDC is Circle’s stablecoin with a market capitalization of nearly €50 billion. A digital equivalent of the dollar that plays an important role in the cryptocurrency and DeFi ecosystem. In short, the bigwigs clearly see potential in the industry with their actions.

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