Artificial intelligence, bitcoin as top BlackRock ETF place

6 1 minute read

BlackRock is observing a shift in the investing patterns of Big Tech investors. Jay Jacobs, the firm’s U.S. head of equity ETFs, has noticed a trend where investors are moving away from traditional tech sectors and focusing more on specific themes like artificial intelligence (AI).

According to Jacobs, one of the significant trades this year is investors moving towards AI-specific ETFs, such as the iShares A.I. Innovation and Tech Active ETF (BAI) from BlackRock. This fund provides exposure to a range of companies in the AI ecosystem, from semiconductor manufacturers to large language models.

As of this week, BlackRock’s iShares website listed Nvidia, Broadcom, Meta Platforms, and Microsoft as the top holdings of BAI. The ETF is heavily weighted towards electronic technology and technology services stocks, comprising more than 85% of its holdings. Despite a 5% drop on Friday, BAI has seen a 36% increase since its inception last October.

Jacobs is also optimistic about blockchain-related stocks, noting a surge in enthusiasm around ethereum has piqued investor interest. The iShares Ethereum Trust ETF (ETHA), which tracks the spot price of ether, has seen a 42% increase over the past 12 weeks.

“Ethereum is a bet on blockchain technology and its various applications like stablecoins and tokenization,” Jacobs explained. He believes that investors are eager to participate in this potentially disruptive theme.

In addition to BAI, the Amplify Transformational Data Sharing ETF (BLOK) offers exposure to blockchain technology. This actively managed fund invests in companies involved in developing or deploying blockchain infrastructure.

Christian Magoon, the founder and CEO of Amplify ETFs, highlighted the various use cases of blockchain technology, such as stablecoins for payments and tokenization of assets like real estate or stocks. He believes that blockchain will have a significant impact on technology, fintech, and the crypto community.

Magoon also pointed out that new regulations, such as the GENIUS Act signed by President Donald Trump in July, could further boost investor confidence in stablecoins. Despite a 5% drop on Friday, BLOK has seen an 89% increase over the past year.

Overall, BlackRock and Amplify ETFs are optimistic about the future of AI and blockchain technology, as investors continue to show interest in these innovative and potentially disruptive themes.