BlackRock Starts Offering Bitcoin To Institutional Investors

BlackRock offers Bitcoin investment. (BlockWorks)

JAKARTA – BlackRock, a multinational investment management giant from the United States has started offering its investors direct exposure to Bitcoin. This step is a continuation of the results of its partnership with Coinbase some time ago.

BlackRock is offering Bitcoin investment for the first time through its Bitcoin Private Trust product. This information was submitted by BlackRock through its official website on August 12, 2022.

According to a CryptoPotato report, this product is a private bitcoin trust for US-based institutional clients that offers direct exposure to the largest crypto spot prices by market cap.

According to the company, the introduction of this product offering is in response to increased interest from large clients looking to access cryptocurrencies. Despite the decline in the crypto market in recent months, BlacRock still believes consumer interest is still high.

“Despite the sharp decline in the digital asset market, we are still seeing great interest from some institutional clients about how to efficiently and cost-effectively access these assets using our technology and product capabilities,” BlackRock said in the announcement.

Previously, BlackRock and Coinbase had agreed to form a partnership. The deal allows BlackRock to offer cryptocurrency investment products to its investors via Coinbase Prime.

“Bitcoin is the oldest, largest and most liquid crypto asset, and is currently the main subject of interest from our clients in the crypto asset space. Excluding stablecoins, bitcoin maintains nearly 50 percent of the industry's market capitalization.”

The entry of BlackRock into cryptocurrency is considered to have the potential to boost Bitcoin price movements. The investment company founded in 1988 is also credited with saving crypto exchange Coinbase from the threat of bankruptcy as a result of the decline in crypto prices in recent months.