BlackRock recently introduced a private trust that allows its clients only in the United States to invest in spot Bitcoin. news that one further strengthens this banking behemoth’s interest in the area of cryptocurrencies.
A fresh offering from BlackRock
The financial behemoth BlackRock manages assets worth around $10 trillion and provides a range of financial services, including risk management, investment consulting, and investment solutions.
BlackRock chose Coinbase a few days ago so that its clients (as well as those of Coinbase Prime) could access Bitcoin through the Aladdin Wealth platform, which enables BlackRock to manage the majority of its assets. a powerful piece of software that allows for the trading of items like Bitcoin futures, Bitcoin ETFs, and Bitcoin stacking.
By making investments in Bitcoin, the most popular cryptocurrency on the market, BlackRock has already begun to slant toward cryptocurrencies. On Thursday, August 11, they announced the opening of a private trust that will give their institutional clients in the US exposure to spot Bitcoin in a blog post.
Thus, we can read the following article from BlackRock:
- Despite the bear market which has severely impacted the world of cryptocurrencies, we are still seeing significant interest from our customers on how to access these assets at a lower cost while using our technology and product capabilities.
Without going into great depth about this new offering, BlackRock is logically seeking to increase its market share in the bitcoin space given the demand from their clientele.
BlackRock’s CEO squeezes
Despite a minor recovery, the price of bitcoin is still 60% lower than it was when it reached its record high last year, about $69,000. However, if we correlate BTC with stocks, many investors believe it cannot decrease any further. Indeed, this year has seen the strongest recorded connections between stocks and bitcoin.
The asset reached its best high since a steep decline in June to its year-low price of $24,700 yesterday. BTC is now worth $23,860 at the time of writing, up 5.36% from the previous week.
The BlackRock article continues as follows:
- Bitcoin is the oldest cryptocurrency, the most important and the one with the most liquidity. As a result, it is the subject of growing interest from our customers who are interested in the world of cryptos.
This comes after remarks made earlier this year by BlackRock CEO Larry Fink about BlackRock customers’ rising interest in cryptocurrencies, particularly stablecoins, and new technologies like blockchain. significantly.
Ecology and BlackRock
BlackRock also used the occasion to highlight the efforts of non-profit groups like RMI and EnergyWeb in their mission to increase transparency in the use of sustainable energy in mining, particularly Bitcoin. The business is interested in keeping track of developments and activities in this area.
In fact, the majority of investors who were originally skeptical of cryptocurrencies and their business have since altered their minds. Despite all of the worries, many people are still wary of investing in cryptocurrencies because of the negative effects they may have on the environment, particularly when it comes to Bitcoin mining.
Getting closer to the cryptocurrency market
BlackRock has done extensive study on industries that are likely to help their clients and the capital markets, focusing mostly on the cryptocurrency sector at the level of blockchains, stable currencies, and any potential crypto assets.
As a result, the announcement from yesterday marks the beginning of what is probably a long-term strategy for BlackRock to further integrate into the cryptocurrency market by providing new crypto-related products to its consumers. This comes after the cooperation with Coinbase that was previously revealed.
Additionally, the revelation is significant since many conventional investors are waiting for the Securities and Exchange Commission (SEC) to approve a Bitcoin spot exchange fund. Only future ETFs have been authorized as of yet.
Beyond BlackRock, which once again demonstrates the world’s rising interest in the cryptocurrency sector, there is a good likelihood that more businesses offering comparable products may emerge in the future. cryptocurrency to their clients.
Although the cryptocurrency industry is still relatively new and unpredictable and volatile, it is evident that it is having a huge impact on global finance to the point that it can no longer be ignored.
