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BlackRock (BLK) Files to Launch Tokenized Fund With Securitize
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As part of its efforts to further expand its foray into digital assets, BlackRock, Inc. (BLK - Free Report) has filed with the Securities and Exchange Commission (“SEC”) to offer a tokenized private equity fund — BlackRock USD Institutional Digital Liquidity Fund Ltd. — in partnership with financial service provider Securitize.
It is not yet clear what assets the fund will hold. But, given Securitize’s presence, it is assumed that the fund will deal with the tokenization of real-world assets.
Per the filing, the minimum investment accepted from any outside investor is set at $100,000.
Tokenization, a process that is gaining importance of late for better efficiency, means buying securities in the form of digital assets using blockchains.
BLK’s move to offer the above-mentioned fund comes a couple of months after it listed a spot Bitcoin exchange-traded fund (“ETF”).
Notably, this January, the SEC gave its approval for the launch of spot Bitcoin ETFs, following which there has been a shift in how cryptocurrencies are viewed and traded by investors.
For years, the SEC warned of the risks of the largely unregulated crypto markets, turning various crypto-based investment applications away and levying fines on alleged crypto scams.
But, after BLK (which was the first asset manager to file for a spot Bitcoin ETF in June 2023), there has been a wave of other asset managers, including Fidelity, which have started trading spot Bitcoin ETFs.
In November 2023, BLK also filed for a spot Ethereum ETF — iShares Ethereum Trust — with the SEC, following which, the price of Ethereum surged to its highest level last year before pulling back afterward.
However, the SEC has not yet given its approval for the trading of spot Ether ETFs. At the beginning of this month, the SEC delayed its decision on BLK’s application for the Ethereum ETF.
The regulator wants to know whether the arguments that were made in favor of the spot Bitcoin ETFs support Ether ETFs as well.
The SEC wants feedback on whether spot Ether ETFs are prone to manipulation. It further wants to know whether spot and futures Ether exchange-traded products are similar.
Despite the inherent risks in the product, it is clear that more investors are now embracing cryptocurrencies. Various asset managers seek to expand in the digital asset space.
Last month, Franklin Resources, Inc. (BEN - Free Report) became the eighth firm within the crypto industry to file for a spot Ethereum ETF. Including BEN, all firms, which have been competing to introduce spot Ethereum ETFs, rolled out spot Bitcoin products this January.
In an interview in January, BlackRock’s CEO Larry Fink said that Bitcoin and Ether ETFs “are just stepping stones towards tokenization and I really do believe this is where we're going to be going.”
Over the past six months, BLK shares have gained 20% compared with the industry’s 23.2% growth.
A better-ranked stock from the same space is Affiliated Managers Group, Inc. (AMG - Free Report) . Currently, AMG carries a Zacks Rank #2 (Buy). Over the past 60 days, the Zacks Consensus Estimate for the company’s current-year earnings has been revised 2.5% upward. In the past six months, AMG shares have gained 21.6%.
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BlackRock (BLK) Files to Launch Tokenized Fund With Securitize
As part of its efforts to further expand its foray into digital assets, BlackRock, Inc. (BLK - Free Report) has filed with the Securities and Exchange Commission (“SEC”) to offer a tokenized private equity fund — BlackRock USD Institutional Digital Liquidity Fund Ltd. — in partnership with financial service provider Securitize.
It is not yet clear what assets the fund will hold. But, given Securitize’s presence, it is assumed that the fund will deal with the tokenization of real-world assets.
Per the filing, the minimum investment accepted from any outside investor is set at $100,000.
Tokenization, a process that is gaining importance of late for better efficiency, means buying securities in the form of digital assets using blockchains.
BLK’s move to offer the above-mentioned fund comes a couple of months after it listed a spot Bitcoin exchange-traded fund (“ETF”).
Notably, this January, the SEC gave its approval for the launch of spot Bitcoin ETFs, following which there has been a shift in how cryptocurrencies are viewed and traded by investors.
For years, the SEC warned of the risks of the largely unregulated crypto markets, turning various crypto-based investment applications away and levying fines on alleged crypto scams.
But, after BLK (which was the first asset manager to file for a spot Bitcoin ETF in June 2023), there has been a wave of other asset managers, including Fidelity, which have started trading spot Bitcoin ETFs.
In November 2023, BLK also filed for a spot Ethereum ETF — iShares Ethereum Trust — with the SEC, following which, the price of Ethereum surged to its highest level last year before pulling back afterward.
However, the SEC has not yet given its approval for the trading of spot Ether ETFs. At the beginning of this month, the SEC delayed its decision on BLK’s application for the Ethereum ETF.
The regulator wants to know whether the arguments that were made in favor of the spot Bitcoin ETFs support Ether ETFs as well.
The SEC wants feedback on whether spot Ether ETFs are prone to manipulation. It further wants to know whether spot and futures Ether exchange-traded products are similar.
Despite the inherent risks in the product, it is clear that more investors are now embracing cryptocurrencies. Various asset managers seek to expand in the digital asset space.
Last month, Franklin Resources, Inc. (BEN - Free Report) became the eighth firm within the crypto industry to file for a spot Ethereum ETF. Including BEN, all firms, which have been competing to introduce spot Ethereum ETFs, rolled out spot Bitcoin products this January.
In an interview in January, BlackRock’s CEO Larry Fink said that Bitcoin and Ether ETFs “are just stepping stones towards tokenization and I really do believe this is where we're going to be going.”
Over the past six months, BLK shares have gained 20% compared with the industry’s 23.2% growth.
Image Source: Zacks Investment Research
Currently, BlackRock carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A better-ranked stock from the same space is Affiliated Managers Group, Inc. (AMG - Free Report) . Currently, AMG carries a Zacks Rank #2 (Buy). Over the past 60 days, the Zacks Consensus Estimate for the company’s current-year earnings has been revised 2.5% upward. In the past six months, AMG shares have gained 21.6%.