cryptocurrency

BlackRock Offers Cryptocurrency Trading for Institutions

It was announced not long ago that investment giant BlackRock has partnered with leading cryptocurrency exchange Coinbase to give its clients the opportunity to invest in crypto assets. Now, the company appears to be taking its digital currency agenda a step further.

BlackRock will offer instant BTC trading to institutional clients

BlackRock announced New special launch Trust institutions so they can gain instant BTC exposure. This is a big deal in the sense that to this day, there has been no Bitcoin-based exchange-traded fund (ETF) on the market, a situation that has caused intense controversies and battles between companies and financial agencies like the Securities and Exchange Commission (SEC).

Although there are ETFs based on futures technology, they are not as powerful as anything that can arise from spot trading. Many investors would like to see products featuring real and physical bitcoins, but the path has been poor and limited in many ways.

While its new product is not an ETF, BlackRock is offering similar exposure to bitcoin and other crypto assets to its customers through its new trust, which will track the bitcoin price performance. The product will also exclude the expenses and responsibilities of the organizations that sign up.

The company said in a statement:

Despite the sharp downturn in the digital asset market, we continue to see strong interest from some institutional clients in how to efficiently and cost-effectively access these assets using our technology and product capabilities.

At the time of writing, BlackRock has over $10 trillion in assets under management. This maneuver is certainly interesting for several reasons, the main one being that the cryptocurrency has been suffering badly lately. The cryptocurrency space is struggling through one of its worst bear markets, with bitcoin’s price down more than 60 percent from last November’s high of more than $68,000 per unit.

Now, the coin is only struggling to maintain a position in the low $20,000 range, and the crypto space has lost more than $2 trillion in overall valuation. Under these circumstances, it is strange for Black Rock to choose Currently To allow its customers exposure to cryptocurrencies, but regardless, this move is sure to strengthen the presence of the industry and make it more widespread and legitimate.

Plans with Coinbase

When discussing the company’s new relationship with Coinbase, Joseph Chalom – Global Head of Strategic Ecosystem Partnerships at BlackRock – explained in a recent interview:

Our institutional clients are increasingly interested in exposure to the digital asset markets and focused on how to efficiently manage the operational lifecycle of these assets. This connection will allow clients to directly manage their exposure to Bitcoin in managing their existing portfolios and trading workflows for a comprehensive view of risk across asset classes.

Tags: BlackRock, ETF, spot trading

#BlackRock #Offers #Cryptocurrency #Trading #Institutions

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