Days after BlackRock, the world’s largest investment management company in the world, entered into a partnership with Coinbase to offer its institutional clients access to cryptocurrency trading services, the firm announced the launch of a spot Bitcoin Private Trust.
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The company said the new product will be available to its institutional clients in the United States. The product will seek to track the performance of Bitcoin and will come with fewer expenses and liabilities for the trust in general.
While the first half (H1) of the year was filled with a lot of uncertainty as it concerns investment in the digital currency ecosystem, BlackRock said it has continued to see significant demand from clients that want exposure to digital currencies by leveraging its technology and market expertise.
The investment company, which holds more than $10 trillion in Assets Under Management (AUM), said it couldn’t resist providing an avenue to help its clients make the most secured investment in crypto should they have to. The company said the reason why the trust product is focused on Bitcoin is not far-fetched and is based on the fact that the digital asset is the oldest and most liquid of all cryptocurrencies.
While it was not made clear whether the spot Bitcoin private trust product has any affiliations with Coinbase Global, BlackRock did acknowledge that its clients will be able to leverage “Coinbase’s comprehensive trading, custody, prime brokerage, and reporting capabilities, common clients will be able to manage their bitcoin exposures alongside their public and private investments.”
BlackRock has long had its eye on the crypto sector and the financial behemoth said its core focus in the industry still remains permissioned blockchains, stablecoins, cryptoassets, and tokenization.
With the backing of the most revered cryptocurrency exchange in the US, BlackRock hopes it will be able to provide its clients the convenience they need to bet on crypto in a safe and regulated manner.
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