Home Technology BlackRock delves into crypto with spot bitcoin private trust

BlackRock delves into crypto with spot bitcoin private trust

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BlackRock delves into crypto with spot bitcoin private trust

BlackRock, the world’s largest asset manager with nearly $8 trillion in assets under management, has launched a private cash bitcoin trust for institutional clients in the United States.

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BlackRock revealed the new investment vehicle in a blog post on its website, although it did not provide further details.

“Despite the sharp decline in the digital asset market, we are still seeing substantial interest from some institutional clients in how to efficiently and cost-effectively access these assets using our technology and product capabilities,” said the company said in the post.

“Bitcoin is the oldest, largest, and most liquid crypto-asset, and is currently the primary topic of interest for our customers in the crypto-asset space,” the post continued.

The news comes barely a week later BlackRock had signed a partnership deal with the main brokerage arm of the popular American exchange, Coinbase. The collaboration is limited to bitcoin, however, and will allow BlackRock’s institutional clients to have access to crypto trading, custody, prime brokerage and reporting via Coinbase Prime.

Customers will also be able to manage their bitcoin and perform risk analysis using BlackRock’s Aladdin software suite.

Back in April, BlackRock participated in a $400 million funding round for Circle, a Boston-based fintech startup. In addition to its investment and role as the primary asset manager of USDC’s cash reserves, BlackRock has partnered with Circle to explore capital market applications for its stablecoin.

BlackRock made headlines last year when it added bitcoin futures to the derivative products that two of its funds can invest in. The development came shortly after BlackRock CEO Larry Fink provided a somewhat bullish view of the world’s first cryptocurrency. In a relatively rare endorsement, Fink said bitcoin had “got the attention” and could largely replace gold, but warned of its growing popularity which is having a real impact on the US dollar.

At the time, Fink, who made BlackRock the largest fund management company in the world, dismissed bitcoin as nothing more than a vehicle for speculation and money laundering.

The world’s largest asset manager launched a blockchain-focused ETF in April that offers investors exposure to the crypto and blockchain industry. The company has added the Blockchain and Tech ETF (IBLC) to its iShares product line.

Edward Dowd, a former Blackrock executive and investment adviser, also said that while gold remains a viable investment, Bitcoin has a better chance of succeeding as a form of wealth storage.

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