Summary: Institutional investors can buy Bitcoin (BTC) with BlackRock through their new spot Bitcoin ETF product. It is expected that BlackRock will also release an Ethereum (ETH) ETF in the near future and offer institutional staking services one the network completes their switch to Proof of Stake.
For more information, you can read BlackRock's official crypto announcement.
Can I buy the BlackRock Crypto ETF?
The forthcoming BlackRock Crypto ETFs will only be available to high-net-worth and institutional investors in the United States. Clients will also be able to stake cryptocurrencies thanks to BlackRock's recent partnership with Coinbase, which will enable investors to earn safe and high yields on their assets.
For retail investors, we recommend using products like eToro that allow you to buy Cryptocurrencies directly, or crypto-related ETFs available on global stock markets. Some examples of Crypto ETFs you can buy on their platform are:
- ProShares Bitcoin Strategy ETF (BITO)
- CI Galaxy Multi-Crypto ETF (CMCX.U)
- Grayscale Bitcoin Trust (GBTC)
- CI Galaxy Ethereum ETF (ETHX.U)
- Global X Blockchain & Bitcoin Strategy ETF (BITS)
- Purpose Bitcoin ETF (BTCC.U)
Is BlackRock buying Cryptocurrencies?
No, there is no clear evidence that BlackRock is buying any cryptocurrencies directly. They are, however, providing exposure to cryptocurrencies through their new Crypto ETF products for institutional clients.
That said, the fact that they are starting to build and promote crypto-related products is a strong sign for the future growth of the digital asset ecosystem, especially among institutional investors.
What is BlackRock?
BlackRock is an American global investment management corporation based in New York City. Founded in 1988, BlackRock operates as a subsidiary of The Blackstone Group, a private equity and financial services firm. As of June 30, 2020, BlackRock managed approximately $7.32 trillion in assets on behalf of clients worldwide.
With headquarters in New York City and offices in more than 30 countries, BlackRock serves a diverse range of clients around the world, including governments, institutions, and individuals. The firm offers a variety of investment products and services, including mutual funds, exchange-traded funds (ETFs), iShares ETFs, separate accounts, private equity, real estate, and credit and fixed income. BlackRock also provides advisory, fiduciary, and risk management services to its clients.
BlackRock was founded in 1988 by Laurence D. Fink and eight other partners. The firm was created in response to the 1987 stock market crash, which highlighted the need for a more diversified approach to investing. BlackRock's original focus was on providing investment management services to institutional investors, but the firm has since expanded its business to include retail and individual investors.
BlackRock's entry into the crypto space is a major milestone for the industry. The firm's expertise and reach should help to bring more institutional investors into the crypto ecosystem, as well as providing more opportunities for retail investors to access digital assets. With BlackRock's ETFs in place, it could pave the way for other asset managers to follow suit. Investors should keep a close eye on BlackRock's activities for further developments.
Co-Founder & former Investment Banker (Finance MBA) turned Full-Time analyst and Head of Research at Buy Bitcoin Bank. Left traditional finance to pursue my interest in digital assets and decentralized finance.