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- BlackRock converts its High Yield Municipal Fund into an active ETF, iShares High Yield Muni Active ETF (HIMU), with $1.5 billion in assets.
- BlackRock expands its ETF portfolio, integrating municipal bonds with HIMU while advancing crypto investment strategies like Ethereum and Bitcoin ETPs.
BlackRock has made another wave in the investment world by converting the BlackRock High Yield Municipal Fund into an active ETF, creating the iShares High Yield Muni Active ETF (HIMU). From its inception, this ETF shot off with $1.5 billion worth of assets. A start that could be said to be ‘up in the air’ for a new ETF.
iShares launching an active muni ETF today that will start life with $1.5b, ETF equiv of being born on 3rd base. Must be nice! https://t.co/FnTlpacSve
— Eric Balchunas (@EricBalchunas) February 11, 2025
New Strategy, New Opportunities
This action reveals BlackRock’s growing aggressiveness in reaching the market with its ETF offerings. Like its predecessor fund, which has kept at the top for more than ten years, HIMU keeps its original objective: maximizing federal tax-free income and capital appreciation.
Just imagine if someone suddenly got a lot of capital since birth. With a strong foundation, he certainly has a better chance of growing than those who have to crawl from the bottom. So is HIMU. Thanks to the conversion from a mature mutual fund, this ETF immediately stepped forward with high confidence in the market.
The Development of Active ETFs: Trend or Future?
Conversely, this active ETF movement does not seem to be merely a fad. BlackRock itself projects that total active ETF assets worldwide would rise from $900 billion in mid-2024 to $4 trillion in 2030. This data indicates that active ETFs’ flexibility is beginning to make investors more at ease than that of traditional funds.
However, HIMU is not BlackRock’s only focus at the moment. The company also continues to explore new opportunities outside of traditional markets, one of which is in the realm of digital assets.
BlackRock and Big Ambitions in the Crypto Industry
Previously, CNF reported that BlackRock’s Ethereum ETF’s option trading permit decision was postponed by the United States Securities and Exchange Commission (SEC) until April 9, 2025. This move extended the period of regulatory review, which naturally led to different investment guesses.
If approved, Ethereum ETF options trading could give investors new ways to hedge risks or speculate on Ethereum’s price swings with more flexible tools.
BlackRock Eyes Europe with Bitcoin ETP Expansion
BlackRock has bigger plans—it’s now getting ready to roll out a Bitcoin exchange-traded product (ETP) in Europe, its first crypto-based ETP outside the U.S.
The presence of this Bitcoin ETP is proof that demand for digital asset-based investment products is increasing among European investors. With easier access to products like this, the crypto market in the region could grow even faster, driven by rising investor confidence in digital assets.
BlackRock’s shift in strategy with HIMU, as well as their research of the crypto sector, show that the corporation is attempting to become a leader in the transition of the investing market, rather than simply following trends.
