BlackRock Launch Spot BTC Private Trust to Increase its Offerings


BlackRock, the world’s largest assets manager with $10 trillion in assets under management (AUM), has announced the launch of its spot Bitcoin private trust.

According to the company, the trust aims to track the performance of Bitcoin (BTC) and brandishes fewer expenses and liabilities to the trust. Presently, it is available to only institutional clients in the United States.

Not deterred by the prevailing market downtrend in the crypto ecosystem, a large number of institutional clients still seek methods and strategies to obtain crypto. Although these clients are targeted towards cost-effective and efficient access which BlackRock provides with its technology and product capabilities.

With all confidence, BlackRock prides itself as a company that is “committed to providing clients with access to their choice of investment opportunities.” Explaining via the announcement, BlackRock affirmed that BTC is the focus of its clients within the crypto ecosystem. 

Bitcoin is the oldest and largest cryptocurrency by market capitalization. Without including stablecoins, BTC occupies up to 50% of the crypto market capitalization. It is believed to be the digital asset with the highest level of liquidity. 

Beyond the spot BTC private trust, the asset management firm has been conducting work on four different digital assets and their unique ecosystems. They are focused on tokenization, permissions blockchain, crypto assets, and stablecoins. 

BlackRock Enters Strategic Partnerships For Institutional Clients

Before the launch of the spot BTC trust, the American multinational investment management firm partnered with Coinbase to provide its institutional clients with crypto trading access. 

The deal will be achieved by linking up Coinbase’s dedicated trading platform for institutional clients, Coinbase Prime, and Blackrock’s investment management platform, Aladdin. Eventually, the clients will have access to offerings like crypto trading, custody, prime brokerage, and reporting capabilities.

The Coinbase-BlackRock partnership deal also signals users’ continuous assurance of traditional financial institutions in the prospect of cryptocurrency. The asset manager is interested in going into more strategic partnerships to provide core services to its institutional clients.

Notably, BlackRock joined Circle, the distributor of the USD Coin (USDC) which also doubles as a digital assets payment firm in a funding round that generated $400 million. As part, of the structure of the deal, BlackRock served as a strategic investor in the round. The digital asset manager is open to many such collaborations for the benefit of its clients.

Godfrey Benjamin
I'm just a nerd who wants the world to know about the unique capabilities of blockchain and digital currencies

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