BlackRock digs further into crypto with spot bitcoin private trust

abdelaziz Fathi

BlackRock, the world’s largest asset manager with almost $8 trillion in AUM, has launched a spot bitcoin private trust for institutional clients in the United States.

BlackRock

BlackRock revealed the new investment vehicle in a blog post on its website, though it didn’t provide further details.

“Despite the steep downturn 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,” the company said in the post.

“Bitcoin is the oldest, largest, and most liquid cryptoasset, and is currently the primary subject of interest from our clients within the cryptoasset space,” the post continued.

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

The clients will also be able to manage their bitcoin and conduct risk analysis using BlackRock’s software suite Aladdin.

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

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

Back then, Fink, who has grown BlackRock into the world’s largest money-management corporation, 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 provides investors with exposure to the crypto and blockchain industry. The company added the Blockchain and Tech ETF (IBLC) to its iShares product line.

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

Read this next

Institutional FX

CLS FX volume continues downward trend in August

Total daily traded volume submitted to CLS for settlement took yet another step back in August.

Digital Assets

Huobi taps AstroPay to facilitate fiat-to-crypto payment in Latin America

Huobi, the world’s sixth-largest crypto exchange by trading volume, has recently partnered with payment solution provider AstroPay to launch local currency account deposits and withdrawals in Latin America.

Digital Assets

Crypto exchange FTX to raise $1 billion at flat valuation of $32 billion

FTX is reportedly in discussions with a clutch of heavyweights from traditional finance to raise up to $1 billion in fresh funding to fuel more deal-making.

Digital Assets

Revolut US launches trading on Avalanche, Solana, and Dogecoin

British fintech and banking firm Revolut has further expanded its cryptocurrency offering in the US with the addition of 29 new tokens.

Digital Assets

Bahrain greenlights eazyPay to launch Binance Pay

The Central Bank of Bahrain has blessed a new partnership inked by Binance with Eazy Financial Services ‘eazyPay’, a local POS and online payment service provider. The greenlight enables EazyPayto to launch Bitcoin and cryptocurrency payments in the region.

Digital Assets

Coinbase approved to offer crypto for Dutch users

Nasdaq-listed crypto exchange operator Coinbase has been handed regulatory approval to operate as a crypto service provider in the Netherlands.

Metaverse Gaming NFT

AC Milan partners with Solana-based NFT football game MonkeyLeague

“Partnering with champions like AC Milan, an absolute iconic Club throughout footballs history, is another testament to what we are building and where we are headed as a game and game studio. It also represents a key step in our plans to bridge the Web2 and Web3 worlds.”

Digital Assets

Shariah-compliant Islamic Coin to support SDG-compliant ventures, green projects, and philanthropy

Shariah-compliant Islamic Coin has recently launched a collaboration with the World Green Growth Organization and the International Youth Conference 6, taking place on September 22-25th and September 30th-October 1st, 2022, in New York. 

Market News

Week ahead: US core PCE and eurozone CPI 

We heard from a range of central banks last week and the update sparked big moves in the markets, and the bulk of the volatility was in currencies.

<