Only US institutional investors have access to the fund as it intends to track the performance of Bitcoin
Asset manager BlackRock, which is in charge of total assets worth $10 trillion, has unveiled its new private spot Bitcoin (BTC) trust, according to Cointelegraph. Only US institutional investors have access to the fund as it intends to track the performance of Bitcoin, deducting the expenses and liabilities of the trust.
Based on information by Cointelegraph, private investment trusts that do not endorse investments from retail investors are not required to register with the regulatory authorities of United States. However, Grayscale Bitcoin Trust can still get the benefits of being publicly traded except for the Securities and Exchange Commission registered, with respect to the over-the-counter markets.
As stated by Cointelegraph, apart from stablecoins, Bitcoin maintains around 50% of the industry’s market capitalisation. In terms of blockchain energy usage, BlackRock is being encouraged by groups such as RMI and Energy Web, which are aiming to develop programs for bringing transparency to sustainable energy utilisation in Bitcoin mining. Previously, BlackRock collaborated with cryptocurrency exchange Coinbase to provide direct access to cryptocurrency for its users, starting with Bitcoin. Users of BlackRock’s institutional investment management platform, Aladdin, will receive the facilities of cryptocurrency trading, custody, prime brokerage and reporting capabilities upon signing with Coinbase. From a wider perspective, BlackRock claims to have conducted research is the four areas of digital assets which are permissioned blockchains, stablecoins, cryptocurrency assets, tokenisation and their associated ecosystems.
According to BlackRock’s official website, it is one of the world’s providers of investment, advisory and risk management solutions. It aims to be a fiduciary to its clients, as it intends to invest for the future on behalf of its clients, inspiring its employees, and supporting the local communities. It also aims to ensure financial well-being, provide investment access and opportunities, give sustainable outcomes out of investments, create inclusive economies, among others.
(With insights from Cointelegraph)
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