BlackRock introduces a private trust offering direct exposure to bitcoin

By: Dickson Arinze

BlackRock introduces a private trust offering direct exposure to bitcoin

August 12, 2022 8:49 AM

BlackRock, an investment management firm, has introduced a private trust that gives institutional US-based clients exposure to spot bitcoin.

 

The trust, which will be BlackRock's first offering that provides direct exposure to the price of bitcoin, will be offered to institutional clients with US addresses.

 

BlackRock stated in a statement that "despite the sharp decline in the market for digital assets, we are still seeing strong interest from some institutional clients in how to efficiently and affordably access these assets utilizing our technology and product capabilities."

 

BlackRock and cryptocurrency exchange Coinbase launched a partnership on August 4 in order to give institutional investors access to cryptocurrencies, starting with bitcoin. BlackRock will use Coinbase Prime to deliver the service; it already oversees almost $9 trillion in client assets.

 

This comes after BlackRock CEO Larry Fink claimed that there was minimal demand for digital assets a year prior.

 

Earlier in 2021, BlackRock said that the CME's bitcoin futures market had given its Global Allocation fund some exposure to bitcoin. Two months prior, two BlackRock funds, including the Blackrock Global Allocation Fund, stated in regulatory filings that they may be able to access the cryptocurrency markets through CME's bitcoin futures product.