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.
After announcing it would enable bitcoin trading services, $10 trillion BlackRock now offers spot bitcoin exposure to institutions in a private trust. https://t.co/lbwwt4hQHZ
— Coin Microscope (@CoinMicroscope) August 12, 2022
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.
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.