BlackRock launches spot bitcoin trust for institutional investors

The company noted an increase in customer interest in the first cryptocurrency, despite the sharp decline in the market for digital assets

11.08.2022 - 13:10

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What’s new? BlackRock, an investment firm with $10 trillion in assets under management, has launched a private spot trust offering US institutional clients investments in bitcoin. The company noted significant customer interest in using investment products based on the first cryptocurrency, despite the sharp downturn in the digital asset market.

Information on the BlackRock website

What else is known about the company's plans? BlackRock representatives believe the most promising areas of the industry for clients and capital markets to use are stablecoins, permitted blockchains, crypto assets and tokenization — areas in which the company is “conducting work.” BlackRock also monitors initiatives aimed at making mining more environmentally friendly.

BlackRock is one of the world's largest asset management and investment firms. The company's shares are trading on the New York Stock Exchange (NYSE) under the ticker BLK. As of August 11, 13:30 UTC, the share price stands at $725,21, up 4,12% overnight.

Earlier, the founder of ARK Invest Cathie Wood stated that if BlackRock entered the crypto market, the bitcoin rate would more than double.

The crypto analyst, who hosts the YouTube channel InvestAnswers, believes that if BlackRock invests 0,5 % of its assets in bitcoin with a 21x multiplier, its capitalization would increase by $1,05 trillion. That would raise the price of BTC to $99 000.

Bitcoin is trading at $24 632, having gained 2,14% overnight, according to Binance.

On August 4, BlackRock announced a partnership with cryptocurrency exchange Coinbase. As part of the partnership, BlackRock institutional investors who use the Aladdin crypto platform will have direct access to digital assets.

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