BlackRock enters crypto, how much of its $10 trillion will be invested?


© Reuters.

Investing.com – The world’s largest asset manager, BlackRock (NYSE:), is reportedly set to introduce a bitcoin trading service to its clients. BlackRock’s entry into the Bitcoin space represents a watershed moment for digital currency as the New York-based company manages over $10 trillion in assets for institutional investors.

The new service would allow BlackRock customers to access loans by putting up cryptocurrencies as collateral with “customer support operations and then with their own credit facility.”

BlackRock has over 1,500 institutional clients, including pension funds and sovereign wealth funds. The latter would thus be able to trade bitcoins through the asset manager’s integrated investment software, Aladdin.

BlackRock is interested in Bitcoin

There is also a working group of “about 20 people” who evaluates crypto-currencies within BlackRock. This team would be responsible for setting up systems and action plans to take advantage of movements in the crypto markets.

Along those lines, BlackRock chief executive Larry Fink said last May that the asset manager was studying bitcoin to determine if it could offer countercyclical benefits. The executive also said that cryptocurrencies could potentially play a role in long-term investments as an asset class similar to .

New Crypto Products Coming Soon

In 2021, the asset manager tiptoed into investing in bitcoin through derivatives traded on the Chicago Mercantile Exchange (CME), according to a filing with the Securities and Exchange Commission. (SEC) of the United States.

Last month, BlackRock filed with the SEC to propose an exchange-traded fund that would invest in companies involved in the “development, innovation and use of blockchain and crypto technologies.”

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