Blackrock Launches Bitcoin Private Trust
Posted by Colin Lambert. Last updated: August 12, 2022
Asset manager Blackrock has given heart to crypto evangelists by launching a spot Bitcoin private trust for US institutional clients. The news comes shortly after the firm announced a partnership with Coinbase to provide market access for mutual clients of the two firms.
In a blog post, Blackrock says in spite of the sharp drop in prices over the past year, it is still seeing “substantial interest from some institutional clients” in how to efficiently and cost-effectively access these assets using the firm’s technology and product capabilities.
With an eye on potential criticism around its ESG commitments, the post makes a point of observing, “BlackRock is encouraged that organisations such as RMI and Energy Web are developing programmes to bring greater transparency to sustainable energy usage in Bitcoin mining, and will follow progress around those initiatives.”
Although predictably seized upon by crypto advocates, as was the case with the Coinbase announcement, there was a muted reaction in the market, Bitcoin rose on news of the trust, but then gave up gains to remain steady around the $24,000 level.