BlackRock Enters The Bitcoinisphere
Not happy with buying and owning every single family home on the market over the past several years, BlackRock has now entered the Bitcoin/crypto universe:
BlackRock Teams Up With Coinbase in Crypto Market Expansion
(Bloomberg) — BlackRock Inc. is partnering with Coinbase Global Inc. to make it easier for institutional investors to manage and trade Bitcoin, taking the world’s largest asset manager into a cryptocurrency market hammered by plunging prices and government investigations.
Coinbase surged 15% to $92.61 at 1:20 p.m. in New York. The partnership with BlackRock provides some relief for the biggest US crypto-trading platform, whose stock had lost more than two-thirds of its value this year through Wednesday.
Top BlackRock clients will be able to use its Aladdin investment-management system to oversee their exposure to Bitcoin along with other portfolio assets such as stocks and bonds, and to facilitate financing and trading on Coinbase’s exchange, according to a statement Thursday. The focus of the partnership with Coinbase, the biggest US crypto-trading platform, “will initially be on Bitcoin,” BlackRock said.
BlackRock’s move deepens the involvement of Wall Street’s traditional financial players in crypto and related technologies, even after this year’s meltdown in such assets. Bitcoin has lost about half of its value in 2022, while the collapse of the Terra ecosystem and hedge fund Three Arrows Capital have raised questions about the resilience of the market and prompted increased regulatory scrutiny.
Coinbase is facing a probe by the US Securities and Exchange Commission into whether the company let Americans trade digital assets that should have been registered as securities.