BlackRock, a global investment manager, is forming a private trust to provide institutional investors with exposure to spot Bitcoin. This will be the first trust to provide direct BTC exposure to institutional clients in the United States.
According to a blog post published on Thursday, BlackRock is starting a spot Bitcoin private trust for institutional clients.
BREAKING: BlackRock launches private trust offering direct bitcoin exposurehttps://t.co/ejZWY7YVll
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Although other products of this type exist, such as the Grayscale Bitcoin Trust (GBTC), it is the issuer’s size. BlackRock manages assets worth $10 trillion. That makes the debut significant and shows a rising number of issuers entering the cryptocurrency market.
“Despite the massive drop in the digital asset market,” the company stated, “many institutional clients remain to show strong interest. They want to access these assets in an efficient and cost-effective manner”
BlackRock also stated that it was “encouraged” by firms working to improve transparency around sustainable energy in Bitcoin mining. Furthermore, it would continue to monitor developments in the cryptocurrency space. Despite the fact that BlackRock does not mention sustainability in describing its new private trust.
Large asset managers have made minor gains in the cryptocurrency industry in recent months in the lack of a comprehensive regulatory framework governing the space. Fidelity Investments Inc. began allowing users to own Bitcoin in April. Also, Charles Schwab just created its first themed ETF. It is an equity ETF covering cryptocurrency-related stocks.
Partnership Between BlackRock and Coinbase
BlackRock announced a partnership with prominent exchange Coinbase a week ago. They want to offer cryptocurrency to their institutional clients. Coinbase partnered with BlackRock to give access to digital assets to its clients. Also, they want to bridge the gap between Coinbase Prime and BlackRock’s Aladdin platform.
BlackRock’s investment management platform, Aladdin, is used by institutional investors and financial institutions. Asset managers, corporate treasurers, insurers, and pension funds are among their clients.
BlackRock’s introduction into the cryptocurrency market is positive to the cryptocurrency markets. Because it will allow for greater inflows into Bitcoin. After BlackRock enters the crypto world, several other big investment management organizations may follow suit. The crypto markets stand to profit from institutional inflows, which may lead Bitcoin’s price to rise.
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