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Blackrock Scores Again: Bitcoin Private Trust Launched For Institutional Investors

Written by: Elena R

August 12, 2022

BlackRock seems to be doing great, and constantly hitting the nail on the head with its planned moves and impeccable timing. 

Most recently, blackrock has rolled out the Bitcoin Private Trust to grant the wishes of its clients and investors- a move heavily applauded by all. 

barry silbert , CEO of Digital Currency Group (DCG), has commented on this, saying that BlackRock’s bitcoin private trust is going to make world Central Banks’ investment in bitcoin org easier and safer. He added that after this, even central banks would consider investing in Bitcoin. 

The Bitcoin Private Trust

Blackrock’s comes just a few days post the news of its partnership with cryptocurrency exchange Coinbase Global Inc spread like wildfire in the crypto space. 

BlackRock, the world’s biggest asset manager, has now launched a bitcoin private trust in the United States, particularly for institutional clients.

BlackRock wrote in a blog post on its website, ‘Private trust will be monitoring the performance of Bitcoin, offering direct exposure to the price of the digital currency.’

“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.”

Institutional Investors To Benefit

With about $9 trillion in assets for institutional clients (including central banks), BlackRock stands as the largest asset fund manager in the world. 

Back in 2014, BlackRock associated with the European Central Bank (ECB) to settle its loan purchase program. In 2020, U.S. federal reserve hired BlackRock to advise it on stabilizing the bond market amid the pandemic concerns.

BlackRock’s client base, particularly Central Banks can now experiment with digital assets, with its launch of the private bitcoin trust.

The bitcoin trust will be offered through coinbase Prime and made available for US-based institutional clients. The private trust will offer the clients direct exposure to the Bitcoin price. 

Surprisingly, Institutional investors seem to be flourishing at a time when retail investors are leaving the market. BlackRock highlighted that the institutional clients are demanding safe exposure to bitcoin in spite of the declining market conditions. 

“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.”

BlackRock’s Collab with Coinbase

The BlackRock-Coinbase collaboration is aimed at crypto market expansion. The main focus of both these companies is institutional investors. Coinbase Prime and BlackRock’s Aladdin are the platforms where the collaboration is supposed to be executed.

Coinbase Prime is the institutional trading platform of Coinbase. Coinbase Prime provides crypto trading, custody, and prime brokerage. Notably, it will be reporting capabilities to the institutional investors of Aladdin. Aladdin is a portfolio management software that eases the portfolio management of institutional investors.

The Chief Operating Officer of BlackRock, Joseph Chalom said, “Our institutional clients are increasingly interested in gaining exposure to digital asset markets and focused on how to efficiently manage the operational lifecycle of these assets.”

Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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