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BlackRock announces launch of Bitcoin private trust for institut

Date:2024-07-12 19:09:24 Channel:Wallet Read:

In the field of financial technology, the collision between tradition and innovation is frequently staged. Recently, BlackRock, a global investment giant, has announced that it will launch a Bitcoin private trust specifically for institutional investment clients. This move has attracted widespread attention in the industry and has set off a heated discussion about the future development of digital currency in the field of institutional investment. Let us unveil this innovative move and explore the opportunities and challenges.

This move by BlackRock is a big boon for institutional investment clients. Traditional financial institutions tend to be conservative about cryptocurrencies, but the launch of BlackRock's Bitcoin Private Trust undoubtedly provides institutional investment clients with more diversified investment options. Institutional investment clients can indirectly hold Bitcoin through trusts, avoiding the risks of direct investment in digital currencies, while also sharing the potential benefits of Bitcoin.

The launch of the Bitcoin Private Trust will also further promote the popularization and application of digital currencies in the field of institutional investment. With the continuous changes in the global financial market, traditional asset allocation methods have become difficult to adapt to today's rapidly changing investment environment. As an emerging asset, digital currencies are attracting more and more institutional investors with their high volatility and potential returns. BlackRock's move can be said to be in line with the trend, providing more investment options for institutional investment clients and exploring a new path for the legalization and standardization of digital currencies.

However, the launch of Bitcoin private trusts also faces some challenges and risks. The digital currency market is highly volatile, prices fluctuate frequently, and investment risks cannot be ignored. Although the trust method can avoid the risks faced by directly holding digital currencies to a certain extent, market risks still exist. Institutional investment clients need to carefully assess their own risk tolerance, reasonably allocate assets, and avoid blindly following the trend.

In addition to market risks, the regulatory environment in the field of digital currencies is also an important consideration. Different countries and regions have different regulatory policies on digital currencies, and the uncertainty of the regulatory environment has brought certain uncertainties to digital currency investments. Institutional investment clients need to pay close attention to changes in regulatory policies and adjust investment strategies in a timely manner to avoid potential regulatory risks.

In general, BlackRock's launch of Bitcoin private trusts provides institutional investment clients with more diversified investment options and promotes the application and popularization of digital currencies in the field of institutional investment. However, investors still need to be cautious when participating in digital currency investment, invest rationally, and reduce risks. The digital currency market is full of opportunities and challenges. Only by balancing risks and benefits can we achieve long-term and stable investment returns. We hope that institutional investment clients can seize the opportunity in this emerging field, obtain more investment returns, and open a new chapter in wealth growth.

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BlackRock, the world's largest asset manager, announced the launch of a spot Bitcoin private trust, which aims to track Bitcoin's performance and reduce the trust's expenses and liabilities. BlackRock (NYSE: BLK) manages more than $10 trillion in assets, but this new private trust is only open to US institutional investors.

Private investment trusts that do not solicit investments from retail investors do not need to register with US regulators. Other investment products such as Grayscale Bitcoin Trust, although not registered with the US Securities and Exchange Commission, can be publicly traded in the over-the-counter market.

BlackRock mentioned in a news release on Thursday: Despite the sharp decline in the digital asset market, we still see some institutional clients have a strong interest in how to invest in such assets efficiently and at low cost. Bitcoin is the oldest, largest and most liquid crypto asset, and it is also the digital asset that our clients are most interested in at present.

BlackRock further explained that the company has been working in four areas of digital assets and their related ecosystems, and believes that these areas have the potential to benefit customers and capital markets more broadly. The four areas are: permissioned blockchain, stablecoins, crypto assets and tokenization.

BlackRock and Coinbase announced a partnership last week to provide clients with cryptocurrency trading and custody services. Users of BlackRock's institutional investment management platform Aladdin will be able to log in to Coinbase
Prime to obtain cryptocurrency trading, custody, prime brokerage and reporting services. Coinbase
Prime currently includes more than 300 cryptocurrencies. The news immediately stimulated Coinbase's stock price that day (August 5), which soared 35% during the day and closed up 10% to $88.90 per share.

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