According to a Jan. 21 filing with the United States Securities and Exchange Commission, BlackRock Inc., the world’s largest asset management business, has applied for an exchange-traded fund (ETF) focusing on blockchain technology (SEC).
The iShares Blockchain and Technology ETF seeks to replicate the investment performance of an index consisting of firms engaged in the “creation, innovation, and use of blockchain and crypto technologies” in the United States and worldwide, the company said.
The fund seeks to replicate the performance of the NYSE FactSet Global Blockchain Technologies Index. BlackRock intends to invest up to 80% of the ETF’s assets in index-related equities. The remaining funds would be used to purchase equity-based futures, options, and swap contracts. Additionally, the fund will refrain from investing directly or indirectly in cryptocurrency via crypto asset derivatives.
“Similar to index mutual fund shares, each share of the Fund reflects an ownership interest in an underlying portfolio of securities and other instruments designed to mirror a market index,” according to the application.
BlackRock is unaffected by the market fall.
The announcement comes amid a crypto market crisis, with bitcoin plunging 20% to $34,600 since Jan. 20. According to the firm’s most recent financial reports, BlackRock had a total of $10 trillion in assets under management by the end of 2021. The total value of ETFs handled was $3.3 trillion.
The business announced last January that its Strategic Income Opportunities Fund (BASIX) and Global Allocation Fund (MDLOX) will be able to invest in cash-settled bitcoin futures trading on commodities exchanges regulated with the Commodity Futures Trading Commission (CFTC).
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