14 September 2022
BlackRock, the world’s largest asset manager, launched a bitcoin trust fund last week. This brand new investment vehicle offers direct exposure to bitcoins spot price, and caters specifically to institutional investors. BlackRock states in the announcement that there’s significant demand for digital assets, despite the recent downturn in the cryptomarket.
News broke last week that BlackRock would be working together with crypto platform Coinbase. Through this partnership, BlackRock would add crypto exposure for over 200 institutional parties, starting with bitcoin. It was seen as an important step to lower the barrier to entry of the crypto space, but with this announcement BlackRock steps up the game even more. A trust fund is seen as an even easier way to get exposure to bitcoin, which will grow the target audience even further.
It has become clear that BlackRock, a powerhouse on the world’s financial stage, is starting to warm up to crypto. The launch of the bitcoin trust fund lowers the distance to digital assets for large institutions, which will increase their adoption. Next to that, it’s an important signal that BlackRock is continuing to see an increase in demand for crypto from the traditional space.