BlackRock, the world’s largest asset manager, has launched a spot Bitcoin private trust for institutional clients in the United States, according to a blog post on its website. BlackRock said the trust will track Bitcoin’s performance, providing direct visibility into the digital currency’s price.
“Despite the sharp downturn in the digital asset market, we still see significant interest from some institutional clients in how to access these assets,” the company said. efficiently and cost-effectively”.
The move takes place a week later electronic money Coinbase exchange speak it has cooperated with Black stones to provide its institutional clients with access to cryptocurrency trading and custody services. Coinbase shares after the announcement.
Last week’s deal provides some positive news for the company, which, like many in the crypto space, has been battered by a plunge in crypto asset prices as investors flee. risk assets amid geopolitical uncertainty, rising exchange rates and worries about an impending recession. Coinbase has been hit the hardest, with shares down more than 60% so far this year.
The company’s institutional trading platform for crypto assets, Coinbase Prime, will provide major crypto trading, custody, brokerage and reporting capabilities for institutional clients on BlackRock’s Aladdin, who are also Coinbase customers. Aladdin offers a suite of software tools designed to help institutional investors manage their portfolios.
The latest developments underscore how traditional institutions including pension funds, hedge funds and banks have been pushing hard into crypto assets lately, betting an alternative asset class will survive.
Even so, the crypto sector has been battered by a decline in asset prices as investors flee riskier assets amid geopolitical uncertainty, inflation, and worries about a potential recession. impending recession.
© Thomson Reuters 2022