BlackRock Launches Bitcoin Private Trust for Institutional Clients

UTC by Ibukun Ogundare · 3 min read
BlackRock Launches Bitcoin Private Trust for Institutional Clients
Photo: Shutterstock

The company said that the No.1 crypto is its clients’ primary subject of interest. 

Investment management company BlackRock (NYSE: BLK) has launched a spot Bitcoin private trust for institutional clients. Announcing the Bitcoin private trust, BlackRock said it is currently available to its institutional clients in the US as it commits to tracking BTC’s performance. This is a huge milestone for BlackRock because this is its first product that offers direct exposure to Bitcoin’s price.

BlackRock revealed that some of its institutional clients are showing interest in crypto despite the current market crash. It added that its consumers look forward to how the company can effectively and cost-effectively access digital assets with its technology and product capabilities. The asset manager chose to launch a Bitcoin private trust due to the cryptocurrency’s spectacular features. BlackRock referred to Bitcoin as the oldest, largest, and most liquid crypto asset. The company added that the No.1 crypto is its clients’ primary subject of interest.

In the official announcement, BlackRock wrote:

“BlackRock is encouraged that organizations such as RMI and Energy Web are developing programs to bring greater transparency to sustainable energy usage in bitcoin mining and will follow progress around those initiatives.”

Furthermore, the company said it has been working on four areas of digital assets and their associated ecosystems. BlackRock said it is confident that its clients and capital markets will benefit from these key areas. They include permissioned blockchains, stablecoins, crypto assets, and tokenization.

BTC Jumps as BlackRock Announces Bitcoin Private Trust

A week before the Bitcoin private trust launch, BlackRock announced a partnership with crypto firm Coinbase (NASDAQ: COIN). Under the deal, Aladdin’s institutional clients will have crypto access via Coinbase Prime. The asset manager said the new offering would begin with Bitcoin, and other assets may come in the near future. The partnership with Coinbase and the launch of the Bitcoin private trust came about a year after CEO Larry Fink said the asset manager has little demand for digital assets.

In reaction to BlackRock’s launch of the BTC product, Bitcoin spiked to around $25,000. At press time, Bitcoin is trading down 2.54% to $23,945.43. Blockware lead insights analyst William Clemente believes the news represents another landmark for Bitcoin. He wrote on Twitter (NYSE: TWTR):

“Last 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 the water is fine and to others it they don’t offer their clients BTC they’ll get their lunch ate.”

More Bitcoin news can be found here.

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