In total assets, announced the establishment of a new private spot Bitcoin (BTC) trust in a blog post published on Thursday.
The fund is exclusively offered to institutional investors in the United States and aims to follow the performance of Bitcoin after deducting the trust's fees and liabilities. In explaining the decision, BlackRock said:
“Despite the dramatic decline in the digital asset market, we are still seeing significant interest from some institutional clients on how to access these assets in an efficient and cost-effective manner utilizing our technology and product capabilities. Bitcoin is the oldest, largest, and most liquid digital asset, and it is the principal subject of interest for our clients in the digital asset industry right now.”
Private investment trusts that do not solicit investments from regular investors are not required to register with US regulatory authorities. Others, however, such as the Grayscale Bitcoin Trust, can nonetheless become openly traded on the over-the-counter markets while not being Securities and Exchange Commission-registered.
Excluding stablecoins, Bitcoin accounts for over half of the industry's market capitalization. Concerning the blockchain's energy consumption, BlackRock stated that it is encouraged by groups such as RMI and Energy Web, which are establishing projects to increase transparency in the use of sustainable energy in Bitcoin mining.
Last week, BlackRock announced a partnership with cryptocurrency exchange Coinbase to give its clients direct access to cryptocurrencies, beginning with Bitcoin. When they join up for Coinbase Prime, users of BlackRock's institutional investment management platform, Aladdin, will have access to crypto trading, custody, prime brokerage, and reporting features. On a larger level, BlackRock noted that it has been undertaking research in four areas of digital assets and their associated ecosystems: permissioned blockchains, stablecoins, crypto assets, and tokenization.