BlackRock seeks to establish a blockchain-focused ETF

• BlackRock has filed an application with the US SEC to launch a new blockchain-focused ETF
• the firm has plans to invest up to 80% of the financial instrument’s assets into stocks included in the NYSE FactSet Global Blockchain Technologies index
• The remaining funds would be allocated toward equities-based futures, options, and swap contracts

BlackRock is one of the leading asset management firms in the world. Recently, the firm has filed an application with the United States Securities and Exchange Commission (SEC) for an exchange-stranded fund (ETF) that will focus on blockchain technology. The upcoming financial instrument will track the New York Stock Exchange (NYSE) FactSet Global Blockchain Technologies index. It is incredible to see that the news came following the crypto market crash, as the flagship cryptocurrency plunged by more than 20% since Thursday.

What does BlackRock intend?

According to an official report, the iShares Blockchain and Tech ETF tracks the investment results of an index. Notably, the index is composed of firms involved in the development, innovation, and utilization of blockchain and cryptocurrency technologies in the United States and elsewhere.

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According to BlackRock, the firm has plans to invest up to 80% of the financial instrument’s assets into stocks included in the NYSE FactSet Global Blockchain Technologies index. And the remaining funds would be allocated toward equities-based futures, options, and swap contracts.

No direct or indirect investments in crypto

BlackRock has clearly highlighted that it will not directly or indirectly invest in cryptocurrency. Or through crypto-assets derivatives. According to the filings, similar to shares of an index mutual fund, each share of the financial instrument represents an ownership interest in an underlying portfolio of securities and other instruments intended to track a market index.

World’s biggest assets manager seems bullish on crypto

The news of establishing a new blockchain-focused ETF came following a significant market crash. BlackRock has a total of $10 trillion worth of assets under management, as per the latest financial report shared by the firm. Notably, the firm has total ETFs managed assets of $3.3 trillion.

Since last year, the firm has been getting involved in the blockchain and crypto ecosystem. Earlier 2021, the assets manager announced that its Strategic Income Opportunities Fund (BASIX) and its Global Allocation Fund (MDLOX) could invest in cash-settled Bitcoin Futures traded on commodity exchanges registered with the Commodity Futures Trading Commission (CFTC).