BlackRock launches a blockchain ETF that offers a 'gradual entry point' into the tech — and the opportunity for exponential growth, says top iShares exec

• On Wednesday, BlackRock launched its new iShares Blockchain and Tech ETF (IBLC).
• The ETF offers an opportunity to capture an emerging trend that BlackRock's head of US iShares product expects to boom.

BlackRock announced on Wednesday its new iShares Blockchain and Tech ETF (IBLC), which allows investors to gain exposure to the blockchain sector without any direct investments in cryptocurrencies.

The exchange-traded fund tracks US and international companies involved in the "development, innovation, and utilization of blockchain and crypto technologies," BlackRock said. Currently, the fund has over $4.7 million in net assets across 34 holdings, excluding cash positions and derivative exposures.

The ETF is a "gradual entry point into the blockchain ecosystem" and includes holdings like crypto exchanges, crypto miners, and underlying technologies, said Rachel Aguirre, BlackRock's head of US iShares product, at a Wednesday panel event.

"The entire ecosystem around the blockchain has seen rapid growth these past two years, and there are a whole host of economic and societal factors driving this growth," she said.

Aguirre added that millennial consumers especially are discovering value in blockchain technologies, as it allows for financial inclusion in ways that were previously impossible.

For example, blockchain technology is allowing consumers to regain control of their personal data, as decentralized finance contributes to the shift toward an emerging trend, she said.

"We have strong conviction that we're at an inflection point, this confluence of factors is coming together," Aguirre said. "Now is the time for investors to capture what we see is going to be exponential growth from here."