BlackRock now offering Bitcoin trading service through Coinbase
BlackRock now offering Bitcoin trading service through Coinbase

BlackRock now offering Bitcoin trading service through Coinbase

By Amelia Tomasicchio - 11 Aug 2022

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Just a few days after announcing its collaboration with the U.S. exchange Coinbase, BlackRock today said it will open a new trading service with Bitcoin.

The new BlackRock program to invest in Bitcoin

BlackRock will offer a new financial product to invest in Bitcoin

Specifically, the service will be a private bitcoin (BTC) investment trust directed to U.S.-based institutional investors.

In the statement posted on its website today, BlackRock explains that the fund will track Bitcoin’s price performance, net of the trust’s expenses and liabilities.

“Despite the steep downturn in the digital asset market,1 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“, BlackRock’s website announcement page reads.

The reason for this openness to Bitcoin is quickly stated: it is the most liquid asset in the crypto sector.

“Bitcoin is the oldest, largest, and most liquid cryptoasset, and is currently the primary subject of interest from our clients within the cryptoasset space. Excluding stablecoins, bitcoin maintains close to 50 percent of the industry’s market capitalization”

The statement reads.

Moreover, the reason the company felt confident enough to launch this service is that RMI and Energy Web are developing plans to ensure that bitcoin does not pollute too much from mining. 

Back in 2020, in fact, the U.S. investment company had already expressed concern at the link between climate change and pollution caused by the operation of Proof of Work.

BlackRock: not just Bitcoin

Also in today’s announcement, BlackRock announced that it is also working on other projects related to the crypto world, especially on stablecoin, asset tokenization, crypto assets, and blockchain, although no further details have been revealed yet, other than the private investment trust in Bitcoin.

BlackRock is collaborating with Coinbase

As mentioned, just a week ago the company announced that it had partnered with Coinbase to have Bitcoin trading within customers’ wallets via Aladdin online banking.

So it’s been a while now since Richard Turnill, head of investment strategy at BlackRock, said in 2018 that investing in cryptocurrencies was destined to lose all their money.

“We don’t see them becoming part of mainstream investment portfolios soon”

he said at the time.

Amelia Tomasicchio

As expert in digital marketing, Amelia began working in the fintech sector in 2014 after writing her thesis on Bitcoin technology. Previously author for several international crypto-related magazines and CMO at Eidoo. She is now the co-founder and editor-in-chief of The Cryptonomist. She is also a marketing teacher at Digital Coach in Milan and she is writing a book about NFTs for the Italian publishing house Mondadori, while she is also helping artists and company to entering in the sector.

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