THE DAILY ENCRYPT

October 3, 2022

Trillion Dollar Asset Manger BlackRock Launches Bitcoin Spot Trust

According to the $10 trillion asset manager, it is also looking into "permissioned Blockchains, stablecoins and cryptoassets"...
Photo by Joshua Woroniecki

According to the $10 trillion asset manager, it is also looking into “permissioned Blockchains, stablecoins and cryptoassets”. BlackRock launched a spot Bitcoin private Trust to provide its U.S.-based institutional clients with direct exposure to the most popular cryptocurrency.

According to the firm, despite market turmoil, there is still ” substantial interest from some of its institutional customers in accessing crypto markets via its technology. This news follows a second announcement by BlackRock last week, which said that users of its Aladdin asset manager platform would have access to Coinbase Prime.

According to the $10 trillion asset manager, it is also looking into “permissioned Blockchains, stablecoins and cryptoassets.”

The Bitcoin trust press release stated that the firm was encouraged by a plan to “decarbonize crypto” created in part by non-profits Energy Web, based out of Switzerland, and RMI based out of the U.S.

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This is an important consideration for institutional investors who previously cited the negative environmental effects of Bitcoin mining as a barrier in adding it to their portfolios.

In November, 74% institutional investors surveyed in Ernst & Young stated that they would likely divest from poor governance, environmental, and social performance.

The U.S. Securities and Exchange Commission has also taken note.

Gary Gensler, SEC Chair, expressed his support for disclosure requirements for funds.

When Tesla announced it would no longer accept Bitcoin for payment in May 2017, CEO Elon Musk stated on Twitter that this was due to the “rapidly growing use of fossil fuels” for Bitcoin mining and transactions.

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The company accepted Bitcoin for two months, but it was criticized by some for what they saw as a mismatch in the electric vehicles and carbon-based energy that is used to mine Bitcoin.

However, Tesla hasn’t completely abandoned Bitcoin. On Thursday, it traded at $24,600 with a market capitalization in excess of $471 billion according to CoinMarketCap.

Blockstream, a crypto miner, announced in April that it had partnered with Tesla and Block, Inc. to create a all-solar Bitcoin mining site in Texas. It is powered by Tesla batteries and solar arrays.

Elena Argyros

Elena Argyros

Elena is cryptocurrency writer / journalist based in Europe. She has extensive knowledge in the crypto space and is a solidity programmer by trade. Elena has built an extensive resume working with some of the most ground breaking blockchain firms. Being in Europe, Elena has amassed a large network of professionals in the space and states "The technology behind blockchain is going to impact everyone on earth in a good way, once you get to understand it".
Elena Argyros

Elena Argyros

Elena is cryptocurrency writer / journalist based in Europe. She has extensive knowledge in the crypto space and is a solidity programmer by trade. Elena has built an extensive resume working with some of the most ground breaking blockchain firms. Being in Europe, Elena has amassed a large network of professionals in the space and states "The technology behind blockchain is going to impact everyone on earth in a good way, once you get to understand it".

© 2022 The Daily Encrypt. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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