New York-based investment management firm BlackRock may launch trading services for Bitcoin and other cryptocurrencies.
BlackRock, the world's largest and most important investment management firm with nearly $10 trillion in assets under management, is planning to offer new services for the purchase and sale of cryptocurrencies, according to reported people familiar with the matter told CoinDesk.
BlackRock will reportedly integrate new features and services for cryptocurrency trading through Aladdin, the company's comprehensive investment and operations management platform. Sources close to BlackRock also reported that the company has plans to offer a line of credits guaranteed with cryptocurrencies, to provide its clients with a wide range of services based on crypto assets. The launch of an exchange-traded fund (ETF), called iShares Blockchain and Tech ETF, is also among the company's recently revealed plans. The new fund will track an index composed of companies related to the world of cryptocurrencies, y blockchain from the United States and abroad, the sources said.
Although BlackRock has not commented on the matter, the company has shown its interest in the crypto world since 2020, when it opened a job offer to hire a Blockchain Vice President. BlackRock has a team of 20 or more people currently working on its strategies for the adoption and integration of cryptocurrencies.
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BlackRock, Bitcoin and cryptocurrencies
A year ago, Rick Rieder, CIO of BlackRock, confirmed that the American company was venturing into the world of cryptocurrencies and that it could invest part of its corporate treasury in Bitcoin.
In recent months, the firm has been making significant investments in projects and companies related to crypto assets. In June last year, BlackRock reported a $383 million investment in shares of two of the largest Bitcoin mining companies in the United States, Marathon Digital Holdings y Riot Blockchain, to increase their stakes in these companies by 6% and 6,61%, respectively, according to BlackRock's results presentation made to the United States Securities and Exchange Commission (SEC).
Later in July, BlackRock revealed profits of more than $300.000 from his investment in Bitcoin futures on the Chicago Mercantile Exchange (CME), the largest derivatives market in the world.
16,3% stake in MicroStrategy
The firm currently owns a 16,3% stake in MicroStrategy, the business intelligence company run by Michael Saylor, one of the world’s biggest Bitcoin advocates and evangelists. MicroStrategy is the largest institutional investor in Bitcoin, with over 125.051 BTC on its balance sheet, valued at around $5.509 billion at the time of writing.
In December, crypto bank Anchorage raised $350 million in a funding round co-sponsored by BlackRock alongside other major crypto industry investors including Goldman Sachs, PayPal Ventures, Andreessen Horowitz (a16z) and Alameda Research.
BlackRock has changed its perception of cryptocurrencies in recent years. According to sources, the investment management firm wants to “start making some money on this,” following in the footsteps of companies like MicroStrategy, Block (formerly Square) and Tesla, which have large investments in cryptocurrencies like Bitcoin. In February last year, Rieder said that Bitcoin was here to stay and that, as the new digital gold, it could eventually surpass the market capitalization of the precious metal.
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