Global asset management giant BlackRock, which caused a stir when it announced the launch of its own bitcoin trust in August, will be working with Kraken subsidiary CF Benchmarks to track data for its offering.
BlackRock will use the Kraken CF Benchmarks Index
BlackRock, which has already partnered with the first cryptocurrency exchange platform (Coinbase) to develop a customized bitcoin offer for its wealthy clients, will use the Kraken CF Benchmarks bitcoin index to complete its new offer.
This index provides real-time access to the price of an asset based on aggregate trading data from major exchanges. This allows you to take a position in the market with the assurance that the price is an accurate reflection of the value at time T, thus avoiding the risk of price manipulation.
The FCA-regulated tool was launched five years ago by benchmark index administrator CF Benchmarks. Owned by the Crypto Facilities group, it was later acquired by Payward, which owns and operates the pioneering Kraken exchange. Initially limited to only bitcoins listed on the Chicago Mercantile Exchange (CME), it has since expanded. Four other crypto-indices have emerged, including Ethereum.
We believe that robust, high-fidelity indices are essential for the development of (…) cryptocurrencies and their continued adoption by an increasing number of individual and institutional investors. Our indices are used for a wide range of financial products, including derivatives contracts, mutual funds and structured products. The combination of indexing methods that have been tried and tested in traditional asset classes with concepts unique to cryptocurrencies is driving asset class adoption.
Blog CF Benchmarks
BlackRock Symbolizes the Institutionalization of Bitcoin
In fact, such a tool contributes to the institutional entry into the cryptocurrency market, and the emergence of BlackRock is a clear proof of this. Far from being the first, he is likely to be the catalyst for the growing institutionalization of the industry. Especially since the timing, a major market correction, is an indicator of the appetite of professional investors for this asset class and puts it, in particular bitcoin, in a promising future.
The understanding of digital assets themselves is much better than before, the people we talk to now understand the difference between bitcoin and ether. (…) BlackRock did not start [un tel] a product if there was no demand (…) because let’s face it, it’s not a risk-free solution. »
Sui Chang, CEO of CF Benchmarks, at TheBlock
As the financial mogul openly enters the game, Wall Street’s influence on the cryptocurrency market will become even more significant. How far ? That is the question.
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