Investment firm BlackRock has announced that it will begin offering the Bitcoin (BTC) focused fund directly. The fund will be the first directly Bitcoin (BTC)-based fund and will serve US customers.
The private fund targeting BlacRock’s US institutional clients and allowing them to invest in spot Bitcoin was announced on the company’s official website. In the announcement, the company underlined that they attracted great interest.
Excited for BlackRock Private Bitcoin Fund
BlackRock, which manages more than $10 trillion in assets, has taken a new step. Announcing its private fund focused on Bitcoin, the company underlined in its statement that Bitcoin holds more than 50 percent of the market cap. In fact, this is an answer to why the company has launched a Bitcoin-specific fund.
BlackRock said in a statement on the subject:
Despite the sharp decline in the digital asset market, we still see a lot of interest from some institutional clients on how we can access these assets efficiently and cost-effectively using our technology and product capabilities. Bitcoin is the oldest, largest and most liquid crypto asset and is currently the primary concern of our customers in the crypto asset space. Excluding stablecoins, Bitcoin holds close to 50 percent of the market cap. BlackRock is working in four areas where we see the potential for digital assets and their associated ecosystems to benefit our clients and capital markets more broadly: permissioned blockchains, stablecoins, cryptoassets and tokenization.
BlackRock and Coinbase Collaboration
BlackRock and cryptocurrency exchange Coinbase announced on August 4 that they would collaborate with institutional investors on access to crypto assets. Today, exactly one week after this news, the Bitcoin fund statement came from the BlackRock front. BlackRock, which manages approximately $9 trillion in funds, will use Coinbase Prime.
This news comes just a year after BlackRock CEO Larry Fink said there was little demand for digital assets. The interest in crypto assets by the institutional investor is a positive situation for the market. In the bull rally we experienced in 2021, the fund strength and interest of institutional investors in crypto gave the market a good period.
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