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.  

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 crypto mining firms 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,