- BlackRock announced the launch of its private trust to offer institutional clients in the United States direct exposure to Bitcoin (BTC).
- BlackRock stated that despite the turbulence, they are still seeing “substantial interest” among some of their institutional clients.
- BlackRock has been investigating four areas with the potential to benefit its clients and capital markets more broadly”, which are: Permissioned Blockchain, Stablecoins, Crypto Assets and Tokenization.
The crypto market may have been quite turbulent over the past few months, but it seems that interest from institutional investors has not faded. In fact, the same black rock he admitted that despite the turbulence, they are still seeing “substantial interest” among some of their institutional clients.
That is why the signature ad the launch of its private trust to offer institutional clients in the United States direct exposure to Bitcoin (BTC).
“Despite the sharp decline in the digital asset market, we are still seeing substantial interest from some institutional clients in how to efficiently and profitably access these assets using our technology and product capabilities.”, he explained in the statement.
Bitcoin is still attractive
On November 7, 2021 the price of Bitcoin (BTC) was $67,566 according to CoinMarketCap and within the community there was a feeling of ecstasy. What will be the next all-time high that BTC will reach? It was the question everyone was asking. This. Of course, it influenced an environment of greater institutional adoption.
It is important to remember that Institutional investors once took a hostile stance towards the cryptocurrency industry, however over the years more and more are noticing the potential.
Even so, since its peak the leading crypto has fallen 64% to date. However, when you look at the historical chart of Bitcoin, you can see that it is not the first time that the crypto has made this type of correction and with each correction, it seems that people who believe that the market is cyclical increase.
BlackRock described Bitcoin as “the oldest, largest and most liquid crypto asset, and currently the main topic of interest for our clients within the crypto asset space”. This is why they have decided to offer a private Bitcoin cash trust, that is, it will seek to track the performance of Bitcoin directly, unlike other financial instruments.
Institutional clients want access to the crypto market!
In the blog post of BlackRock, the company explains that it has been investigating four areas with “potential to benefit our clients and capital markets more broadly.” These areas are the Authorized Blockchain, Stablecoins, Cryptoactives and tokenization.
However, there is one important element that has stopped many institutional clients from investing in Bitcoin: Environmental impact! Let us remember that the Bitcoin Blockchain works under a Proof of Work (PoW) consensus mechanism, which in particular consumes a large amount of energy, generally fossil energy that, as is known, is polluting.
In this regard, BlackRock explained that it is encouraged by the RMI and Energy Web programs, which seek to offer transparency to the use of sustainable energy in Bitcoin mining.
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