BlackRock launches private spot Bitcoin trust for institutional investors

BlackRock has now launched its first investment product with direct exposure to Bitcoin– a private Bitcoin trust.
BlackRock has now launched its first investment product with direct exposure to Bitcoin– a private Bitcoin trust.

The United States-based multinational investment management company BlackRock is all set to mark its solid presence in the crypto industry. After partnering with crypto exchange giant Coinbase last week, the company has now launched its first investment product with direct exposure to Bitcoin– a private Bitcoin trust.

According to a recent statement by the firm, the debut of its first investment product offering with direct exposure to BTC comes in response to a rise in demand from its high-net-worth clients looking for access to cryptocurrency.

Notably, the new product by BlackRock is a private Bitcoin trust that offers U.S.-based institutional investors the direct exposure to the spot price of the world’s oldest, largest, and most liquid cryptocurrency Bitcoin.

In the midst of geopolitical instability, inflation, and concerns about an oncoming recession, many investors shunned risky assets, which has hurt the cryptocurrency industry. However, the company, which sees a massive potential in this emerging market, stated that Bitcoin is “currently the primary subject of interest from our clients within the crypto asset space.” It further added:

“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.”

Other initiatives by BlackRock

Moreover, BlackRock expressed its encouragement on the new RMI and Energy Web’s decarbonization approach for electricity-intensive industries to bring greater transparency to sustainable energy usage in BTC mining. It hinted at its massive plans on these initiatives.

The latest launch comes a week after BlackRock’s partnership with Coinbase. The $10 trillion asset manager joined hands with the U.S. exchange giant to offer common customers of Aladdin and Coinbase the access to the digital assets trading lifecycle via linking Coinbase and the Aladdin platform, as TheCoinRise reported. 

Common clients will be able to manage their crypto exposure along with their public and private investments by using Coinbase’s extensive trading, custody, and prime brokerage capabilities.