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Why $10 Trillion AUM BlackRock Launched Spot Bitcoin Private Trust For Clients

Investment and financial services firm BlackRock will launch a spot Bitcoin private trust in the United States, according to an official post. The investment product was created as a response to the “substantial interest” from the firm’s client which has remained despite BTC’s price losing over 50% of its value in 2022.

The spot Bitcoin private trust, as the name suggests, will provide BlackRock’s client with exposure to the price of the underlying assets for that market. Until now, the firm’s clients in the U.S. have few alternatives to gain exposure to the price of the cryptocurrency in a cost-efficient manner. BlackRock stated the following:

Despite the steep downturn in the digital asset market, we are still seeing substantial interest from some institutional clients in how to efficiently and cost-effectively access these assets using our technology and product capabilities.

The largest investment firm on the planet, BlackRock has an estimated over $10 trillion in assets under management (AUM) and around $20 billion in yearly revenue.  On the official post, the firm acknowledged Bitcoin as the “oldest, largest, and most liquid crypto asset, and is currently the primary subject of interest from our clients” in the space.

The news has been considered positive by crypto investors due to BlackRock’s relevance in the legacy financial world. Analyst Will Clemente said the following on the spot Bitcoin private trust:

Last comment on the matter: Think the Blackrock news is probably the most bullish news for a long term Bitcoin holder ever. Not just the news itself, but that it signals to some the water is fine and to others if they don’t offer their clients BTC they’ll get their lunch ate.

BTC’s price with important gains on the 4-hour chart. Source: BTCUSDT Tradingview
BlackRock Commits To Bitcoin And 4 Sectors In The Crypto Space

BlackRock has been a leader in the Environmental, Social, and Governance (ESG) movement. The firm and others have injected billions of capital into companies that meet their criteria. Bitcoin was thought to be outside of this movement due to its alleged high energy consumption.

Today’s announcement, coming from the largest investment firm in the world, sends a completely different signal to the financial world. According to analytics account MacroScope, BlackRock is waving the “green “BTC is ok” flag to the entire ESG-focused investment sector”.

The above might have important bullish implications for Bitcoin in the long run. In their post, BlackRock confirmed that it’s focused on 4 sectors in the crypto space: permissioned blockchains, stablecoins, crypto assets, and tokenization.

As Bitcoinist reported, the investment firm recently announced a partnership with crypto exchange Coinbase to provide common clients with access to digital currencies. The investment recently said about their cooperation with this platform:

Leveraging Coinbase’s comprehensive trading, custody, prime brokerage and reporting capabilities, common clients will be able to manage their bitcoin exposures alongside their public and private investments.