$10T BlackRock Launches Bitcoin Private Trust for Clients
Investment and financial services firm BlackRock will launch a spot Bitcoin private trust in the US, according to an official post. The investment product was created in response to the “substantial interest” from the firm’s clients that has persisted despite BTC’s price losing over 50% of its value in 2022.
The Spot Bitcoin private trust, as its name suggests, will give BlackRock’s client exposure to the price of the underlying assets for that market. Until now, the firm’s clients in the United States have had few options to gain exposure to the price of the cryptocurrency in a cost-effective manner. BlackRock stated the following:
Despite the sharp decline in the market for digital assets, we continue to see significant interest from some institutional customers in how we can efficiently and cost-effectively access these assets using our technology and product capabilities.
The largest investment firm on the planet, BlackRock, has an estimated $10 trillion in assets under management (AUM) and approximately $20 billion in annual revenue. In the official post, the firm recognized Bitcoin as the “oldest, largest and most liquid crypto-asset, and is currently the primary topic of interest from our clients” in the space.
The news has been considered positive by crypto investors due to BlackRock’s relevance in the legacy financial world. Analyst Will Clemente so the following on the site Bitcoin private trust:
Final comment on the matter: Think the Blackrock news is probably the most bullish news for a long-term Bitcoin holder ever. Not just the news itself, but that it signals to some that the water is fine and to others if they don’t offer their customers BTC, they will eat their lunch.
BlackRock commits to Bitcoin and 4 sectors in the crypto space
BlackRock has been a leader in the Environmental, Social, and Governance (ESG) movement. The firm and others have poured billions of capital into companies that meet their criteria. Bitcoin was thought to be out of this movement due to its alleged high energy consumption.
Today’s announcement, coming from the largest investment company in the world, sends a very different signal to the financial world. According to the analysis account MacroScope, BlackRock is wave the “BTC is OK” green flag to the entire ESG-focused investment sector.
The above could have important bullish implications for Bitcoin in the long run. In their post, BlackRock confirmed that it is focused on 4 sectors in the crypto space: permissioned blockchains, stablecoins, cryptoassets and tokenization.
As Bitcoinist reported, the investment firm recently announced a partnership with crypto exchange Coinbase to give regular customers access to digital currencies. The investment recently said of their partnership with this platform:
Leveraging Coinbase’s extensive trading, custody, prime brokerage and reporting capabilities, regular customers will be able to manage their bitcoin exposures alongside their public and private investments.
