BlackRock and Coinbase join forces to offer institutional crypto investment products in bear market

To summarize:

  • BlackRock will provide institutional investors with crypto investment opportunities.
  • Heavyweight asset management firm has partnered with cryptocurrency exchange Coinbase to make this possible.
  • BlackRock’s Aladdin customers will have access to these facilities through the announced Coinbase prime.
  • The asset manager’s CEO Larry Fink hinted at the development back in March.
  • The news reiterated that institutional players remain interested in digital assets despite the ongoing bear market.

BlackRock, one of the world’s largest asset managers, has signed an agreement to offer crypto investments exposed Tokens like Bitcoin and Ethereum are still more than 50% below their all-time highs amid the ongoing bear market.

The asset management giant with over $10 trillion in assets under management (AUM) has now entered into a partnership with Coinbase, a leading San Francisco-based cryptocurrency exchange.

BlackRock’s agreement with Coinbase will provide institutional investors access to cryptocurrency investment facilities through Coinbase prime. The service provides a secure custody platform and advanced trading tools to over 13,000 institutional clients.

The transaction between the two entities is designed to provide BlackRock’s Aladin customers with direct access to the cryptocurrency. Thursday’s announcement mentioned bitcoin as the asset that customers will be exposed to.

This connection to Aladdin will allow clients to manage their Bitcoin exposure directly within their existing portfolio management and trading workflows to gain an entire portfolio view of risk across asset classes.

BlackRock’s Coinbase Partnership Shows Institutional Demand for Crypto

BlackRock CEO Larry Fink previously hinted in March 2022 that the asset management giant could explore crypto trading.Fink pointed out at the time Require Exposure to cryptocurrencies is growing rapidly.

Joseph Chalom, Head of Global Strategic Ecosystem Partnerships, made similar comments regarding the growing institutional demand for digital assets.

Our institutional clients are increasingly interested in accessing the digital asset market and focusing on how to effectively manage the operational lifecycle of these assets.

Notably, the news comes at a time when crypto asset prices have experienced a drop in value, with bears seemingly taking control of the market.

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