BlackRock Launches Metaverse ETF Increasing Crypto Exposure
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BlackRock has launched a new metaverse exchange-traded fund (ETF). The New York-based financial conglomerate intends to bring additional investor exposure to the market with this financial instrument.
Responding to Growing Institutional Interest
Earlier this week, BlackRock launched the iShares Blockchain Technology UCITS ETF – a blockchain-focused ETF that will allow investors to gain additional exposure to the crypto space. According to the company, 75% of holdings in the ETF will consist of publicly traded blockchain companies, including crypto exchanges and crypto mining firms. The other 25% will consist of companies that provide supporting features for the blockchain ecosystem.
So far, the ETF comprises 35 global blockchain companies out of a total of 50 holdings. As a means of diversification, BlackRock has also added a few cash and derivative holdings into the ETF.
The top holdings in the ETF are Coinbase (13.20%), USD cash (13.00%), payment processing giant Block (11.40%), and bitcoin mining sites Marathon Digital Holdings (11.13%) and Riot Blockchain (10.50%). Other holdings include six financial services companies, 23 IT firms, one digital communications company, and one industrial company.
Omar Moufti, BlackRock’s ETF product strategist, explained that the new financial product would allow the company’s clients to engage better with global companies leading the blockchain space’s development. He added that BlackRock believes that blockchain and crypto will see increasing adoption and relevance, especially for the company’s clients, going forward.
With developments in use cases and the complexity of the market, BlackRock envisages a future where digital assets and blockchain technology will be even more relevant to the world. As a result, the company is looking to offer its clients an opportunity to invest in these spaces.
Web3 Exposure Increases for BlackRock
In August, BlackRock announced a milestone partnership with crypto exchange Coinbase to offer direct access to crypto for interested clients. As a result of the partnership, users of Aladdin, BlackRock’s institutional investment management platform, can access services like crypto custody, prime brokerage, and investment reporting using Coinbase Prime.
We are proud to announce a partnership with @BlackRock. BlackRock’s Aladdin clients will now have direct access to crypto markets through Coinbase Prime.
— Coinbase 🛡️📞 (@coinbase) August 4, 2022
Read more 👇https://t.co/LA3XeYYbvs
Days after this announcement, the company disclosed the launch of a private spot Bitcoin trust. The fund, which is only available to institutional investors in the United States, will track the performance of the leading digital asset.
At the time, BlackRock explained that they had seen significant interest among institutional clients in digital assets, despite this year’s market downturn. The company stated that many institutional investors would like to access the market seamlessly and cost-effectively, and they plan to start with Bitcoin.
Meanwhile, reports suggest that the company isn’t done with its foray into Web3. Bloomberg pointed out on September 29 that BlackRock could be looking to launch an ETF that focuses on the metaverse. The prospective ETF’s fees and ticker haven’t been listed yet, but Bloomberg remarked that it could include companies with products or services tied to virtual platforms, gaming, social media, digital assets, and more.
TAMA – The Ideal Metaverse Play for Crypto Investors
Investors looking to gain metaverse exposure can also consider TAMA – the native token for the Tamadoge gaming platform. TAMA’s presale was one of the best crypto presales in the market this year.
The digital asset was recently listed on the OKX exchange, with over $10 million in trading volumes already. The platform’s developers are expected to make deeper inroads into the metaverse from 2023, so this asset could be a good way for investors to get exposure to this budding space.
