Coinbase Partners with BlackRock to Create New Ways for Institutional Cryptocurrency Investment.
BlackRock , the world's largest asset manager with over $10 trillion in total assets under management, has launched a new private Bitcoin spot fund BTC. The fund is only available to US institutional investors and seeks to track the performance of Bitcoin, less expenses and fund obligations. Explaining such a decision, BlackRock stated:
Despite the sharp decline in the digital asset market, we continue to see considerable interest from some institutional clients in how to efficiently and profitably access these assets using our technology and product features. Bitcoin is the most popular digital asset older, larger, more liquid and is currently the main focus of our clients in the digital asset space.
Private investment funds that do not solicit participation from retail investors do not need to register with US regulatory authorities. But others, like the Grayscale Bitcoin Investment Trust, can be publicly traded although they are not registered with the SEC on the unofficial or over-the counter OTC markets.
Excluding stablecoins, Bitcoin holds close to 50% of the sector's market cap. When it comes to blockchain energy use, BlackRock says it is encouraged by organizations such as RMI and Energy Web, which are developing programs to bring greater transparency to the use of sustainable energy in Bitcoin mining.
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