BlackRock launches bitcoin focused fund for large investors

Last Updated: 12 August 2022

BlackRock is launching a fund focused on bitcoin (BTC). The asset manager offers this product to US institutional clients, who can get direct exposure to the price of BTC.

This is BlackRock’s first product directly related to bitcoin. With assets under management of around $10,000 billion (!), BlackRock is one of the biggest players in the market. However, it is not expected that billions will suddenly flow into bitcoin. However, that option is now available to BlackRock clients.

“Despite the sharp declines in the digital asset market, we are still seeing significant interest from some institutional clients,” BlackRock writes on its website. So it seems to be a simple matter of supply and demand.

Coinbase

Last week, it was announced that Coinbase is BlackRock’s partner for these steps. Institutional investors can get started via Coinbase Prime. This service is offered in a digital environment called Aladdin. Again, the latter was developed by BlackRock.

For now, the only service is around bitcoin. It is a new highway of exposure to the industry. Interested customers with contracts with both Aladdin and Coinbase can ask for access to the services.

Coinbase Prime is Coinbase’s response to institutional interest. The average investor in that market is not concerned with storing bitcoin themselves. They simply want exposure in this new emerging world.

Author

  • I first came into contact with Bitcoin in 2017 - and since then, the topic of cryptocurrencies has never left me. For this reason, I have also made BTC & Co. part of my profession and write as a freelance author for crypto publications.

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