A few days back, BlackRock partnered with Coinbase to offer crypto services to its Alladin clients, and now it launches a ‘Bitcoin Private Trust.’ The world’s largest asset manager stated that they have been seeing high demand from clients. That is why BlackRock is bringing this option despite the bear market. This also shows that crypto is here to stay if its demand isn’t faltering in the market downturn.
BlackRock steps into the crypto territory
A Bitcoin Private Trust that, too, from the largest asset manager in the world, sounds like a dream. BlackRock has over $10 trillion in assets under management which shows how beneficial its offerings can be to the crypto market. Their trust will be available to the institutional clients in the US who are interested in Bitcoin despite the huge market downturn and a fall from its all-time high of $69k.
It is important to note that when we talk about crypto and demand from institutional clients, it mostly refers to Bitcoin and, at most, Ethereum. BlackRock also said the same, citing that the primary interest of institutional clients lies in the largest and most liquid crypto asset that is Bitcoin.
Apart from offering crypto services to their clients, BlackRock is also studying the technology and its offerings to understand how they can use it to serve their clients better. The company’s CIO is also positive about BTC and crypto markets in general.
BlackRock and Coinbase
Before this, BlackRock had also partnered with the largest crypto exchange in the US, Coinbase, as I mentioned above. The asset manager plans to integrate Coinbase Prime directly into their platform, allowing users to trade Bitcoin directly without having to move to a third-party app or platform. Coinbase is also going to offer custody for crypto, reporting, and prime brokerage services to BlackRock.
Coinbase Prime, which is going to be integrated with BlackRock, already has around 13,000 institutional users. It has support for around 200 popular crypto assets for trading and around 300 for custody, reporting, and more. They have also support for APIs, which make integration pretty easy. Furthermore, ETFs are also supported, giving institutional clients another option that they might prefer.
What are your thoughts as BlackRock launches a ‘Bitcoin Private Trust’ due to client demand? And do you think the world’s largest asset manager entering the crypto space will revolutionize it? Let us know in the comments below. And, if you found our content informative, do share it with your friends.