With $10 trillion worth of assets under management, Blackrock has officially announced the launch of a new ETF called the iShares exchange-traded fund that will give customers access to crypto markets without having an actual investment in Bitcoin or Ethereum.
BlackRock is an American investment management company working across borders, known as the worldโs largest asset manager. The primary motive of the recent move is to concentrate on cryptocurrency, tech companies, and blockchain technology. BlackRock intends to attract rich corporate entities to do business in the crypto space without direct investment in risky assets like Ethereum or Bitcoin.
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BlackRock Motives To Launchย New ETF
BlackRockย applied to the Securities and Exchange Commission (SEC) for Tech ETF (IBLC) the last January and 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.
Coinbase, the worldโs leading and well-reputed cryptocurrency exchange, is a prominent holding of IBLC, with 11.45 percent. Marathon Digital Holdings, a Bitcoin mining company, is the ETFโs next partner, with its 11.19 percent stake. Finally, IBLC has a 10.41 percent share of Riot and shares of Paypal, the company well-known for its payments service, which launched crypto facilities in 2020.
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The company, on its iShares webpage,ย disclosed,
Blockchain tech is allowing independence and control of personal data while enabling financial inclusion for billions of unbanked consumersย
A detailedย studyย highlighting the demand and need for a โdecentralized digital ecosystemโ after the worldโs millennial lockdown was also present, along with funds.ย
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The recent development of fund initiated at the moment crypto space is integrating with the conventional financial system at a fast pace. For example, Fidelity had alreadyย declaredย a week ago that clients would be able to add Bitcoin to their 401(K) retirement account.
BlackRock highlighted that it invested in the cryptocurrency market too late andย declaredย to raise cash funds for USDC, which was running with a worth of $50 billion and positioned as central to the crypto ecosystem and Defi.ย
Featured Image from Pixabay and chart from tradingview.com
