Get 40% Off
🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

BlackRock and Upvest form strategic alliance to democratize European investing

EditorAmbhini Aishwarya
Published 10/11/2023, 07:50 PM
© Reuters.

BlackRock (NYSE:BLK) has entered into a strategic partnership with Berlin-based fintech firm Upvest, aiming to democratize investing for millions across Europe. Announced on Wednesday, the collaboration brings together BlackRock's extensive expertise in ETFs and asset management and Upvest's cutting-edge investment API, with the goal of creating innovative investment experiences.

As part of this collaboration, BlackRock participated in Upvest's €30 million funding round. Other investors included Bessemer Venture Partners, HV Capital, Earlybird, Notion Capital, ABN Amro Ventures, and 10x Capital. The partnership aims to capitalize on the growing retail investment market in Europe, where the number of ETF savings plans is expected to increase from 4.9 million in 2021 to approximately 20 million by 2026.

Upvest's portfolio engine and re-balancing features, both regulated by the German supervision authority (BaFin), along with innovations such as fractional dealing of ETFs and stocks, are seen as potential benefits for neo brokers and neo banks. Timo Toenges from BlackRock's iShares EMEA Digital Wealth business and Martin Kassing, Co-founder and CEO at Upvest, expressed their enthusiasm about the potential of the partnership to transform the investment landscape.

Toenges highlighted the transformative potential of their partnership with Upvest during its €30 million funding round. This aligns with Upvest CEO Martin Kassing's push for enhanced investment infrastructure. BlackRock's digital expansion includes collaborations with Revolut, an 'ETF Quicklist' with Lloyds (LON:LLOY), and a direct-to-consumer service via Monzo using their MyMap fund range.

A YouGov survey predicts a 32% rise in European ETF investors within a year. This growth is spurred by German online platforms like Scalable Capital and Trade Republic, fractional trading, and the anticipated growth to 20 million ETF savings plans by 2026.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.