Blackrock, the New York-based multinational investment management corporation with over $10 trillion in assets under management as of January 2022, has filed an application with the U.S. Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) called the iShares Blockchain Tech ETF. The fund aims to track the Intercontinental Exchange (ICE) index known as the Factset Global Blockchain Technologies Index (NYFSBLC).
ETF Objectives and Index Composition
According to the SEC filing, the iShares Blockchain and Tech ETF seeks to track the investment results of an index composed of U.S. and non-U.S. companies involved in the development, innovation, and utilization of blockchain and crypto technologies. The filing specifically mentions sectors including cryptocurrency mining, cryptocurrency trading and exchanges, and crypto-mining systems. The NYFSBLC index was initiated on December 31, 2021, providing a benchmark for Blackrock's new fund.
Blackrock’s move comes after its CEO Larry Fink expressed a positive outlook on bitcoin, envisioning a “huge role for a digitized currency.” Chief Investment Officer Rick Rieder also noted in September 2021 that bitcoin’s price could rise significantly. The ETF filing follows earlier indications from Blackrock’s head of ETF and index investments, Salim Ramji, who first mentioned the blockchain ETF plans during the first week of December 2021.
Strategic Significance for Crypto Adoption
The proposed ETF would not directly invest in cryptocurrencies but instead provide exposure through equities of companies engaged in blockchain-related activities. If approved by the SEC, it would mark a milestone as the first blockchain-themed ETF from a top-tier asset manager, potentially paving the way for greater institutional adoption of digital assets. Market observers view Blackrock’s filing as a strong signal of growing mainstream acceptance of blockchain technology.
It remains to be seen whether the SEC will greenlight the product, given the regulator’s cautious stance on crypto-linked ETFs. However, Blackrock’s vast resources and regulatory experience could improve the odds of approval. The filing adds to a growing list of traditional financial giants venturing into the blockchain space.