BlackRock announces the launch of a new Bitcoin trust private spot
The move comes a week after it partnered with Coinbase to provide institutional clients with access to crypto trading.
New
According to a new blog post on Thursday, BlackRock, the world's largest asset management firm overseeing over $10 trillion in total assets, has launched a new private Bitcoin (BTC) cash trust. The fund is only available to US institutional investors and seeks to track the performance of Bitcoin, minus the expenses and liabilities of the trust. Explaining the decision, BlackRock said:
“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 capabilities. Bitcoin is the oldest, largest, and most liquid digital asset and is currently the primary focus of our customers in the digital asset space."
Private investment trusts that do not solicit investments from retail investors do not need to register with regulatory authorities in the United States. But others, like the Grayscale Bitcoin Investment Trust, can still be publicly traded (but not registered with the SEC) in the over-the-counter markets.
Excluding stablecoins, Bitcoin retains nearly 50% of the industry's market capitalization. When it comes to blockchain energy use, BlackRock says it is encouraged by organizations such as RMI and Energy Web, which are developing programs to bring greater transparency to sustainable energy use in bitcoin mining.
Last week, BlackRock partnered with cryptocurrency exchange Coinbase to provide customers with a direct crypto review, starting with Bitcoin. Users of BlackRock's institutional investment management platform, Aladdin, will benefit from crypto trading, custody, prime brokerage, and reporting capabilities when signing up for Coinbase Prime. On a broader level, BlackRock states that it has conducted research in four areas of digital assets - authorization blockchains, stablecoins, crypto ass...
The move comes a week after it partnered with Coinbase to provide institutional clients with access to crypto trading.
New
According to a new blog post on Thursday, BlackRock, the world's largest asset management firm overseeing over $10 trillion in total assets, has launched a new private Bitcoin (BTC) cash trust. The fund is only available to US institutional investors and seeks to track the performance of Bitcoin, minus the expenses and liabilities of the trust. Explaining the decision, BlackRock said:
“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 capabilities. Bitcoin is the oldest, largest, and most liquid digital asset and is currently the primary focus of our customers in the digital asset space."
Private investment trusts that do not solicit investments from retail investors do not need to register with regulatory authorities in the United States. But others, like the Grayscale Bitcoin Investment Trust, can still be publicly traded (but not registered with the SEC) in the over-the-counter markets.
Excluding stablecoins, Bitcoin retains nearly 50% of the industry's market capitalization. When it comes to blockchain energy use, BlackRock says it is encouraged by organizations such as RMI and Energy Web, which are developing programs to bring greater transparency to sustainable energy use in bitcoin mining.
Last week, BlackRock partnered with cryptocurrency exchange Coinbase to provide customers with a direct crypto review, starting with Bitcoin. Users of BlackRock's institutional investment management platform, Aladdin, will benefit from crypto trading, custody, prime brokerage, and reporting capabilities when signing up for Coinbase Prime. On a broader level, BlackRock states that it has conducted research in four areas of digital assets - authorization blockchains, stablecoins, crypto ass...
What's Your Reaction?
