ParamountDax Weekly Newsletter: BlackRock ready to launch a new ETF while investing in 35 blockchain-related companies!

BlackRock, the world’s largest asset manager, has just launched a new exchange-traded fund (ETF) to provide European customers with exposure to the blockchain industry, while reports indicate a Metaverse-focused ETF may be on the way.

An exchange-traded fund (ETF) is a type of pooled investment security that operates much like a mutual fund. Typically, ETFs will track a particular index, sector, commodity, or other assets, but unlike mutual funds, ETFs can be purchased or sold on a stock exchange the same way that a regular stock can.

The new blockchain ETF launched on Sept. 27 is called the iShares Blockchain Technology UCITS ETF.

BlackRock said 75% of its holdings consist of blockchain companies such as miners and exchanges, while the other 25% are companies that support the blockchain ecosystem.

The fund includes 35 global companies out of a total of 50 holdings, which also includes fiat cash and derivatives, but does not directly invest in cryptocurrencies.

In a Sept. 29 report from Finextra, product strategist for thematic and sector ETFs at BlackRock Omar Moufti said the ETF will “allow our clients the opportunity to engage with global companies leading the development of the emerging blockchain ecosystem,” adding:

“We believe digital assets and blockchain technologies are going to become increasingly relevant for our clients as use cases develop in scope, scale and complexity.”

On another note, a Bloomberg report on Sept. 29 suggests that BlackRock may be working on another ETF — focused on the Metaverse, called the iShares Future Metaverse Tech and Communications ETF.

The report said that the fund’s fees and ticker are not yet listed but might include “firms that have products or services tied to virtual platforms, social media, gaming, digital assets, augmented reality and more.”

The Metaverse ETF follows insights published on Feb. 14 from BlackRock Technology Opportunities Fund co-portfolio manager Reid Menge, who labeled the Metaverse a “revolution in the making.”

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Best Wishes to all of You,

The ParamountDax Team