BlackRock, the world’s largest Bitcoin ETF (IBIT Fund) asset manager, will close iShares Frontier, a $400 million ETF that invests in frontier and select emerging markets equities, including Nigeria and Kenya.
BlackRock joins other foreign investors exiting the Nigerian macroeconomic environment. The continued exit is blamed on a tough macroeconomic environment that has affected firms like Microsoft, etc.
“The Board of Directors of the Company approved a proposal to liquidate the fund. In light of persistent liquidity challenges in certain frontier markets, including among other things, delays or limits on repatriation of local currency, the board determined that it is in the best interest of the fund and its shareholder for the fund to liquidate,” iShares said in a statement.
The fund will enter an extended liquidation period and expects the last day of trading to be March 31, 2025. During the period, iShares will sell its assets in all markets and hold the proceeds in cash and cash equivalents.
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“Currency conversions, including conversion of Nigeria’s currency, the naira, will impact the timing of the fund’s liquidation. As a result, the fund will enter into an extended liquidation period,” iShare said.
BlackRock’s iShares has already liquidated its holdings across companies listed on the Nairobi Securities Exchange (NSE), amounting to a $5.2 million investment. This includes companies like Safaricom ($2.8 million), Equity Group ($1.5 million), and KCB Group ($885,000).
What You Should Know: BlackRock iShares ETF is no longer available and will enter full liquidation until 31 March 2025 when trading ceases to exist.
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