- The world’s largest asset manager BlackRock is now offering its first ever investment product directly in Bitcoin, marking a significant move into the cryptocurrency markets.
- The US$8.5 trillion asset manager’s move into cryptocurrencies is emblematic of a broader shift towards the nascent asset class by Wall Street’s biggest players.
Although the Grayscale Bitcoin Trust was the first regulated security offering that enabled professional investors to gain exposure to Bitcoin, there have been a slew of other products since, including futures-backed Bitcoin ETFs and spot-based ones in places like Canada and Europe.
Not one to be left behind, the world’s largest asset manager BlackRock (+0.54%) is now offering its first ever investment product directly in Bitcoin, marking a significant move into the cryptocurrency markets.
The private Bitcoin trust looks to track the price of the benchmark cryptocurrency and will respond to demand from large institutional clients seeking exposure to the asset, despite a sharp plunge in its price over the past year.
Bitcoin is down over 70% from its all-time-high last year and is roughly 50% lower today than where it started the year.
Professional investors nonetheless remain positive in the prospect of the cryptocurrency, preferring to buy when the asset is cheap, rather than retail which often dives in when an asset is expensive.
BlackRock’s Bitcoin trust product, is the asset manager’s second foray into cryptocurrencies this past week and comes hot on the heels of its partnership with cryptocurrency exchange Coinbase Global.
The US$8.5 trillion asset manager’s move into cryptocurrencies is emblematic of a broader shift towards the nascent asset class by Wall Street’s biggest players.
