BlackRock has launched a private trust offering U.S. institutional clients direct access to bitcoin.
The world’s largest asset manager unveiled the new product in a blog post on Thursday, though it offered few details.
“Despite the sharp downturn in the digital asset market, we continue to see significant interest from some institutional clients in how to effectively and cost effectively access these assets using our technology and product capabilities,” the company said in a statement. .
Bitcoin is still more than 60% below its all-time high of nearly $69,000. However, many investors believe stocks have bottomed out, with the two asset classes more correlated with each other this year than ever before as risky assets plunge in 2022. On Thursday, the digital currency surged above $24,700 and reached its highest level since just before falling to its June low.
“Bitcoin is the oldest, largest and most liquid crypto asset and is currently the main topic of interest to our clients in the crypto asset space,” the post continues.
The announcement follows CEO Larry Fink, who said earlier this year that BlackRock customers are showing a “growing interest” in digital currencies, including stablecoins and “underlying technologies” also known as blockchain.
On Thursday, BlackRock also commended non-profit energy organizations RMI and EnergyWeb for their work “to bring greater transparency to the sustainable use of energy in bitcoin mining,” adding that the company “will be monitoring the progress of these initiatives.”
Institutional investors who were once hostile to the crypto industry have changed their minds in recent years, but the environmental concerns surrounding the bitcoin mining process continue to be a hurdle for many.
The post states that BlackRock is looking for areas that “could benefit our clients and capital markets more broadly,” including permissioned blockchains, stablecoins, crypto assets, and tokenization.
Thursday’s News is the latest news about BlackRock cryptocurrencies. The company, which manages about $8.5 trillion in assets, recently announced a partnership with Coinbase that allows its institutional clients to purchase cryptocurrencies, starting with bitcoin.
It also comes amid frustration from new institutional investors in the market who want the Securities and Exchange Commission to approve a bitcoin cash exchange-traded fund. So far, only bitcoin futures ETFs have been approved.