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BlackRock Announces Spot Bitcoin Private Trust on Heels of Coinbase Deal

BlackRock has launched a spot bitcoin private trust open to institutional inventions in the United States, the world’s largest asset manager said in a release on its website.

The post BlackRock Announces Spot Bitcoin Private Trust on Heels of Coinbase Deal appeared first on BeInCrypto.

BlackRock has launched a spot bitcoin private trust open to institutional inventions in the United States, the world’s largest asset manager said in a release on its website.

According to the announcement, the trust will track the performance of Bitcoin, despite the steep downturn in the digital asset market. The company said it was “seeing substantial interest from some institutional clients in how to efficiently and cost-effectively access these assets using our technology and product capabilities.”

“The launch of BlackRock’s Bitcoin fund is a sign of how far crypto has matured as an asset class,” said Sui Chung, CEO of crypto index provider CF Benchmarks.

The announcement also highlighted that BlackRock has been focusing on four areas of digital assets and associated ecosystems. These include permissioned blockchains, stablecoins, crypto-assets, and tokenization.

BlackRock partners with Coinbase

The move comes on the tail of BlackRock announcing a partnership with Coinbase earlier this week. The asset manager will connect its Aladdin investment technology platform with the exchange, due to its comprehensive trading, custody, prime brokerage and reporting capabilities. 

This will enable BlackRock’s institutional clients to trade cryptocurrencies, starting with Bitcoin. The Aladdin network is widely used in fund management to link asset managers, insurers and banks to markets, who will also now be able to use it to manage their Bitcoin exposures.

The move by the asset manager represents a marked shift in its stance on digital assets, especially from vocal crypto skeptic Larry Fink. BlackRock’s chief executive said in 2017 that “Bitcoin just shows you how much demand for money laundering there is in the world,” adding “that’s all it is.”

Meanwhile, Coinbase, the largest cryptocurrency exchange in the U.S. by volume, booked a loss of more than $1.1 billion for the second quarter.

The publicly-listed exchange fell short of its targets for the quarter as key metrics plummeted. Earlier this week, it was subpoenaed by the Securities and Exchange Commission (SEC) over its staking and yield products.

The post BlackRock Announces Spot Bitcoin Private Trust on Heels of Coinbase Deal appeared first on BeInCrypto.

Source: Markets – BeInCrypto

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Altcoins

Nasdaq focused on crypto custody services but no plans for crypto platform yet

In September, the world’s second-largest stock exchange Nasdaq announced that it will offer custody…

The post Nasdaq focused on crypto custody services but no plans for crypto platform yet appeared first on CoinJournal.

In September, the world’s second-largest stock exchange Nasdaq announced that it will offer custody services for Bitcoin (BTC) and Ether (ETH) to institutional investors. Nasdaq hired Ira Auerbach, a former Gemini employee, to head the new Nasdaq Digital Assets unit.

The main reason the new Nasdaq Digital Assets Unit was targeted toward institutional investors is the remarkable growth in crypto adoption among this class of investors in the past few years. While investing in cryptocurrencies is one thing, safeguarding the accumulated crypto holdings is another and company-owned crypto funds require special handling thus the need for custodial services.

While many crypto exchanges already offer crypto custody services for institutional investors, many believe the institutional investors’ space is largely neglected and Nasdaq is not late for the party.

No plans for a Nasdaq crypto platform yet

Despite Nasdaq jumping into the crypto space with the crypto custody services, the company’s executive vice president and head of North American markets, Tal Cohen, said that the company shall wait for further clarity in crypto regulations and global crypto adoption before it decides on whether to launch a crypto platform.

Speaking to Bloomberg TV, Cohen said:

“Those are discussions we are happy to have. But right now, on the retail side, the market is fairly saturated. There’s a number of exchanges servicing the retail customer base.”

Nasdaq instead plans to stick to its crypto custody services citing massive demand and opportunity from customers.

Cohen said:

“We think if you can safe-keep peoples’ assets, they’ll trust you to do everything else afterwards.”

Cohen also said that besides the custody services, the stock exchange was working on facilitating the transfer of digital assets.

The post Nasdaq focused on crypto custody services but no plans for crypto platform yet appeared first on CoinJournal.

Source: CoinJournal: Latest Bitcoin, Ethereum & Crypto News

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