BlackRock – the world’s largest asset manager with a $10 trillion portfolio – has initiated a spot Bitcoin private trust for its institutional clients in the US.
“Despite the steep downturn in the digital asset market, 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 company wrote on its website.
“Bitcoin is the oldest, largest, and most liquid cryptoasset, and is currently the primary subject of interest from our clients within the cryptoasset space.”
Bitcoin has come under scrutiny from investors for its extensive electricity consumption. Institutions had previously flagged Bitcoin investments citing environmental concerns. However, BlackRock believes the industry is moving towards more sustainable mining practices, which would only progress with time.
The asset management firm also said that it is working across four potential areas in the space: permissioned blockchains, stablecoins, cryptoassets, and tokenization.
Last week, BlackRock tied up with crypto exchange Coinbase to integrate its Aladdin platform with Coinbase Prime.
“This connectivity with Aladdin will allow clients to manage their Bitcoin exposures directly in their existing portfolio,”
the company had said.
In April, the firm also launched a blockchain and tech ETF, tracking companies involved in utilizing and developing blockchain and crypto companies.
Last year, BlackRock’s CEO Larry Fink had suggested that the company saw sparing demand for cryptocurrencies from its investor community. The company’s stance might be shifting in light of the recent product launches.
