BlackRock Announces Launch of New Private Spot Bitcoin Trust

BlackRock Announces Launch of New Private Spot Bitcoin Trust

The BlackRock logo is seen outside of its offices in New York January 18, 2012. B REUTERS/Shannon Stapleton

BlackRock announces the launch of a new private spot Bitcoin trust. The move comes a week after partnering with Coinbase to provide institutional clients with access to crypto trading.

BlackRock—the world's largest asset manager with over $10 trillion in combined assets—has launched a new private spot Bitcoin (BTC) trust, reported Cointelegraph. The fund is only available to US institutional investors and aims to track the performance of Bitcoin, less the expenses and liabilities of the trust. BlackRock wrote that despite the downturn in the digital asset market, they are seeing high interest from some institutional clients, so it has come up with a new product.

“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. Bitcoin is the oldest, largest and most liquid digital asset and is currently our clients’ primary subject of interest within the digital asset space.”

Private equity funds that do not raise investment from retail investors are not required to register with US regulators.

Last week, BlackRock partnered with cryptocurrency exchange Coinbase to provide its clients with direct access to crypto, starting with Bitcoin. Mutual clients of Coinbase and BlackRock's investment management platform, Aladdin, will have access to crypto trading, custody, prime brokerage, and reporting capabilities. Access will be provided through Coinbase Prime, an existing integrated trading platform for institutional crypto investors. The companies will continue to develop platform integration and roll out various features in phases, the blog post said.

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About the Author

Eva Fox

Eva Fox

Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.

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