BlackRock, the world's largest investment manager, has launched its first private investment fund offering direct exposure to Bitcoin, the most important and capitalized cryptocurrency in the industry.
Growing institutional interest in Bitcoin has led BlackRock to create a private investment fund in Bitcoin, the company's first to offer its investors direct exposure to the BTC price on the spot market.
The New York-based investment firm reported that its clients and institutional investors have been substantially demanding an investment product that would allow them to directly trade Bitcoin, which is currently the main digital asset of interest among BlackRock clients.
According to the company, the demand from its investors for exposure to Bitcoin has not diminished, not even with the sharp drop in the digital asset market this year. For this reason, BlackRock has launched its first private investment fund in Bitcoin, which will allow it to meet the demands and needs of its institutional investors, while also being able to further diversify the options it offers its clients and boost their strategies to adopt new technologies.
The private investment fund is currently only available to institutional clients in the United States.
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BlackRock works in four key areas of the crypto industry
As BlackRock reported in a statement, the company has been working in four areas of the crypto industry, including its associated ecosystems. These have been authorized blockchain networks, stablecoins, cryptoassets and tokenization. BlackRock assured that it sees enormous potential in these areas, to create new products and services that benefit its clients and the capital markets in general.
On the other hand, the company noted that it is encouraging programs driven by the RMI and Energy Web platforms, which are focused on providing greater transparency to the sustainable use of energy in Bitcoin mining.
“Bitcoin is the oldest, largest and most liquid crypto asset, and is currently the main focus of our clients within the crypto space.”
In her releaseThe investment company also noted that Bitcoin maintains close to 50 percent of the industry's market capAt the time of writing, Bitcoin’s market cap is hovering around $458.480 billion, with BTC trading at around $23.900 per unit.
In terms of market capitalization, the market's leading cryptocurrency ranks above several of the world's largest financial companies, such as Visa, Mastercard, JP Morgan and Tencent, according to the data from the ranking platform for companies, Companies MarketCap.
Source: CoinMarketCap
Following the launch of BlackRock's private investment fund in Bitcoin on Thursday, the price of BTC rallied by more than 5%, approaching $25.000 per BTC. However, at the time of writing, its value has retreated slightly. Recent reports on inflation in the United States are also influencing the cryptocurrency market.
BlackRock's Aladdin also offers access to Bitcoin
In addition to its new private investment fund in Bitcoin, earlier this month BlackRock announced the opening of new financial services in cryptocurrencies through Aladdin, BlackRock's comprehensive investment management and operations platform. From this platform, its institutional clients can also access trading and custody of Bitcoin and, in the future, other major cryptocurrencies in the market.
Continue reading: BlackRock's Rick Rieder: “Bitcoin and cryptocurrencies are durable assets”
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