Summary:
- BlackRock has announced a private trust for institutional clients.
- The trust will focus on providing direct exposure to Spot Bitcoin for the firm’s institutional customers.
- Investors based in the U.S. would be the first to tap this offering, per Thursday’s statement.
- The giant asset manager recently teamed up with Coinbase for institutional crypto exposure.
- BlackRock’s CEO Larry Fink said institutions had shown little demand for digital assets in 2021.
- This rhetoric changed in 2022 when Fink hinted that the firm could tap into cryptos as risk appetite had increased.
One of the world’s largest asset managers BlackRock announced direct exposure to Bitcoin (BTC) spot for institutional clients on Thursday via a newly launched private trust as the firm moves to tap growing demand for cryptocurrencies.
The so-called “BlackRock Bitcoin Private Trust” will cater to institutional customers within the United States, per an official announcement shared by the firm on Thursday. Also, the private trust is designed to track BTCs’ performance as the leading coin in the crypto market.
Despite a slump in crypto prices, the investment manager sees demand in the market and plans to cater to an increasing appetite for risk assets.
We are still seeing substantial interest from some institutional clients in how to efficiently and cost-effectively access these assets using our technology and product capabilities.
The BTC private trust news comes shortly after BlackRock signed a deal with Coinbase to provide Aladdin clients with crypto exposure via Coinbase prime.
BlackRock Taps Institutional Demand For Bitcoin And Cryptos
Notably, CEO Larry Fink previously said the firm didn’t see sufficient demand for virtual assets back in 2021. However, this stance has since changed in 2022 and Fink hinted that the asset manager could explore cryptos.
Thursday’s statement also revealed that the investment manager with over $10 trillion in assets under management (AUM) has so far researched four key areas of the digital assets ecosystem including crypto assets, permissioned blockchains, stablecoins, and tokenization.
The news represents increased institutional interest in cryptocurrencies as the market experiences massive cash inflows after a considerable slump earlier in the year. TA Will Clemente noted that the news could be bullish for long-term BTC holders.
