October 4, 2022


Summary:

  • BlackRock will provide institutional investors with exposure to crypto investments.
  • The heavyweight asset manager has partnered with crypto exchange Coinbase to make this possible.
  • BlackRock’s Aladdin customers will have access to such facilities through Coinbase prime as announced.
  • The asset manager’s CEO, Larry Fink, hinted at the development in March.
  • The news confirms that institutional players retain an appetite for digital assets despite the ongoing bear market.

BlackRock, one of the world’s largest asset managers, has signed a deal to offer crypto investments exhibition to institutional investors amid an ongoing bear market where tokens like Bitcoin and Ethereum remain over 50% from all-time highs.

The asset management behemoth with more than $10 trillion in assets under management (AUM) now has a partnership with Coinbase, a leading cryptocurrency exchange based in San Francisco.

BlackRock’s deal with Coinbase will power cryptocurrency investment facilities for institutional investors through Coinbase prime. The service provides a secure custody platform and advanced trading tools to more than 13,0000 institutional clients.

The deal between the two entities is set to equip BlackRock’s Aladin clients with instant access to cryptocurrencies. Thursday’s announcement listed Bitcoin as the asset to which customers will be exposed.

This connectivity with Aladdin will allow clients to manage their bitcoin exposures directly into their existing portfolio management and trading workflows for a comprehensive view of portfolio risk across all asset classes.

BlackRock’s Coinbase partnership signals institutional demand for Crypto

BlackRock CEO Larry Fink previously hinted in March 2022 that the asset management powerhouse could explore crypto trading. Fink then noted that demand because exposure to cryptocurrencies was growing rapidly.

Global Head of Strategic Ecosystem Partnerships, Joseph Chalom, echoed similar observations about growing institutional appetite for digital assets.

Our institutional clients are increasingly interested in gaining exposure to digital asset markets and are focused on how to effectively manage the operational lifecycle of these assets.

Notably, the news comes as crypto asset prices have suffered a drop in value and bears appear to be in control of the market.





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