BlackRock’s institutional clients would now have access to a spot bitcoin private trust, according to an announcement shared by the company on August 11.
According to the asset manager,
“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.”
The company explained that the trust would enable institutional clients to track Bitcoin’s price performance directly. It would also provide them with direct exposure to the flagship digital asset.
BlackRock’s new product is coming at a time when the crypto market is recovering from a market meltdown that saw Bitcoin and other digital assets trade record lows.
However, the company noted that interest in the asset remains high despite the recent bearish sentiment. According to BlackRock, institutional clients are interested in how to efficiently and cost-effectively access the assets.
The firm wrote:
“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.”
Meanwhile, in one of the videos being shared on Twitter, BlackRock's CEO Larry Fink revealed that the firm’s website had recorded over 600,000 hits about one of its Bitcoin blog posts —an indication of the company’s clients' level of interest in the asset.
600k “hits” on the Blackrock website for #btc compared to mice nuts for other subjects. https://t.co/AC5w6PMpqo— FOSS - Lehman CDS at 9bps in '06, ?? now at 33 (@FossGregfoss) August 11, 2022
Last week, the asset manager partnered with Coinbase to allow its institutional clients access to crypto trading and custody services.
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BlackRock’s latest move underscores institutional investors' interest and demand for Bitcoin.
Bitcoin reacts positively to news of BlackRock’s adoption
Bitcoin has responded positively to news of BlackRock’s move as its value has spiked above the $24,000 level. According to data on CoinCodex, Bitcoin is currently trading for $24,200 after rising by over 1% in the last 24 hours.
The asset has also seen its value rise by over 20% within the last 30 days.