It was pointed out by BlackRock that blockchain has the ability to “enable financial inclusion for billions of unbanked customers.”
With over $10 trillion in assets under management, BlackRock, the world’s biggest asset manager, is a believer in blockchain.
The iShares exchange-traded fund (ETF) is a new product from the American corporation that focuses on blockchain technology, cryptocurrencies, and tech-related firms. With the introduction of a crypto index fund, BlackRock users will be able to benefit from the crypto market without directly investing in risky assets like Bitcoin or Ethereum.
Earlier this year, BlackRock filed an application with SEC for the fund, stating that it “seeks to monitor the investment outcomes of an index comprised of firms engaged in the creation, innovation, and exploitation of blockchain technology.”
Coinbase, the world’s most popular cryptocurrency exchange, has an 11.45 percent stake in the fund’s portfolio. Companies like Marathon Digital Holdings and Riot, which operate Bitcoin mining operations, and PayPal, the world’s largest payment processor, are also listed.
The iShares website speaks to the disruptive potential of blockchain and cryptocurrencies, adding that the technology “enables financial inclusion for billions of unbanked clients.” Full research accompanying the fund indicates that millennials are increasingly seeking “decentralised digital ecosystems” after worldwide lockdowns.
The fund’s debut coincides with the conventional financial sector’s growing involvement in cryptocurrency. Fidelity Investments announced earlier this week that consumers would be able to allocate Bitcoin to their 401(k) retirement accounts.
To keep pace with the growing importance of the Defi and cryptocurrency ecosystems, BlackRock has just announced that it would handle the US dollar-denominated stablecoin USDC’s cash reserves.
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