BlackRock Trust Private Launches for Instant Bitcoin Exposure

  • BlackRock said Thursday that it has launched a special trust fund to provide instant Bitcoin to its US institutional clients.
  • The move comes after BlackRock teamed up with crypto exchange Coinbase.
  • Bitcoin soared on Thursday to trade above $24,000.

BlackRock is expanding its reach into the crypto world by launching a special trust for institutional clients to provide instant exposure to bitcoin, making the move during a long downturn in the price of digital assets.

The largest asset manager in the world in the current situation He said Thursday that the trust for US institutional clients aims to track Bitcoin’s performance, excluding trust expenses and liabilities.

“Despite the sharp downturn in the digital asset market, we continue to see strong interest from some institutional clients in how to efficiently and cost-effectively access these assets using our technology capabilities and products,” the company, which has US$10 trillion in assets, said in its management.

She said bitcoin is a “principal topic of interest” from BlackRock clients within the crypto-asset space. The price of Bitcoin during the Thursday session increased by 2.4% to $24,523 after the previous trade below $24,000.

The news of confidence comes after last week’s announcement that BlackRock was Partnership with cryptocurrency exchange Coinbase To provide cryptocurrency trading services to its major clients. Queen Piece It said it will connect clients using the investment arm of BlackRock Aladdin with Coinbase Prime.

The launches come at a difficult time – dubbed “crypto winter” – for the cryptocurrency market. Bitcoin price has fallen from an all-time high above $68,000 in November 2021. Prices for ether Several other so-called coins were also hit during that period, bringing the valuation of the cryptocurrency market down to nearly $1.1 trillion from over $3 trillion in nine months.

The widespread risk appetite for cryptocurrencies during this period was affected by a range of issues including concerns about rising interest rates, the risk of economic recession, cryptocurrency hacks, and bankruptcy of crypto-related businesses.

BlackRock said it operates in four areas of digital assets where it sees the potential to benefit its clients and the broader capital markets: blockchain, stablecoins, crypto-asset groups, and tokens.

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