Investment management firm Blackrock is launching a private trust that gives U.S.-based institutional clients based exposure to spot Bitcoin (BTC).
Despite a subdued cryptocurrency market, there is substantial interest from institutional clients in accessing digital currencies efficiently and cost-effectively, the firm claims.
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“Bitcoin is the oldest, largest, and most liquid crypto asset, and is currently the primary subject of interest from our clients within the crypto asset space," BlackRock stated. "Excluding stablecoins, bitcoin maintains close to 50 percent of the industry’s market capitalization.”
BlackRock, which manages $9 trillion of customer funds, is also encouraged by initiatives from the likes of RMI and Energy Web to increase transparency in the use of sustainable energy for BTC mining.
The news comes on the heels of a partnership with crypto exchange Coinbase.
“Leveraging Coinbase’s comprehensive trading, custody, prime brokerage, and reporting capabilities, common clients will be able to manage their bitcoin exposures alongside their public and private investments,” according to Blackrock.
The recent news marks a turning point for BlackRock. Just last year, CEO Larry Fink said there was very little demand for digital assets and that those interested in crypto or other volatile assets like meme stocks were not BlackRock's clientele.
Fink had said that most of the clients who work with BlackRock are thinking on a longer time horizon, and crypto has yet to fit into that thinking.