BlackRock is entering the crypto-inspired exchange-traded fund space amid $1 trillion losses.
The iShares Blockchain and Tech ETF will invest in companies involved in the “development, innovation and utilization of blockchain and cryptography technologies,” according to a Friday filing with the U.S. Securities and Exchange Commission. If launched, it would be the first crypto-related fund in the lineup of the largest ETF issuer.
Salim Ramzi, head of BlackRock’s global ETF business, said on a December episode of Bloomberg’s “Trillions” podcast that a thematic blockchain fund is in the works.The number of ETFs tracking cryptocurrency-related stocks has grown to 15 in recent years, according to data from Bloomberg Intelligence, as the SEC continues to balk on approving a spot bitcoin ETF.
Ramzi said in December that the firm would maintain high standards for liquidity and transparency for its crypto funds, adding that “as the regulatory environment becomes clearer and the underlying liquidity dynamics in that market become more to our satisfaction, some of that dynamic will likely work in our favor.”
Bitcoin briefly dipped below $37,000 per coin on Friday, bringing its total decline from November's highs to about 46%. That hit crypto-related stocks and funds hard, with the $1 billion Amplify Transformation Data Sharing ETF (ticker: BLOK) plummeting 8% on Friday.
BlackRock's proposed ETF's ticker and management fee have not yet been announced.
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