Bitcoin soared through February, with the combined crypto market adding nearly $300 billion from January lows, despite a strong price warning from JPMorgan.
Subscribe now to Forbes CryptoAsset & Blockchain Advisor and discover new NFT and crypto blockbusters ready to earn 1000%
However, bitcoin price is still down around 40% from its November peak, with other major coins including Ethereum, BNB, Solana, Cardano and XRP also well below their 2021 highs. .
Now, reports have surfaced that the world’s largest asset manager, BlackRock, which manages $10 trillion in assets for institutional investors, is gearing up to enter the bitcoin and cryptocurrency market.
sign up now for free CryptoCodex—A daily newsletter for the crypto-curious. Helping you understand the world of bitcoin and crypto, every day of the week
“[BlackRock] sees all the flow that everyone is getting and wants to start making money from it,” a person with knowledge of BlackRock’s plans said. Coindesk.
Another said BlackRock will allow its customers to trade cryptocurrency through its sophisticated Aladdin investment management platform, while a third said BlackRock is “looking to get hands-on with crypto pure and simple” and “was looking for suppliers in space”.
BlackRock’s interest in bitcoin and cryptocurrencies has grown over the past few years. In December 2020, BlackRock chief executive Larry Fink said growing search volume for “bitcoin” on the company’s website indicated growing legitimacy, adding that the level of attention generated by the comments BlackRock’s bitcoin precedents showed how the cryptocurrency has “captured the attention and imagination of many” who are “fascinated and excited” about it.
In May, Fink noted the asset manager was studying bitcoin to determine if it could offer counter-cyclical benefits and speculated that bitcoin could potentially play a role in long-term investing as an asset class similar to gold.
Last year, one of BlackRock’s funds bought bitcoin futures, and last month the asset manager filed for an exchange-traded fund (ETF) that would hold blockchain and cryptocurrency companies. cryptography.
As of 2021, other Wall Street giants have started exploring bitcoin and cryptocurrencies amid growing customer demand. However, most are very cautious and have signaled that they want to see more regulatory clarity before moving forward.
CryptoCodex—A free daily newsletter for the crypto-curious
In July last year, Bank of America approved bitcoin futures trading for certain clients after Goldman Sachs relaunched its cryptocurrency trading desk after a three-year hiatus. Although the bank’s chief executive, Jamie Dimon, remains skeptical of bitcoin and crypto, JPMorgan last year gave its wealth management clients access to cryptocurrency funds.
Acceptance of bitcoin and cryptocurrency on Wall Street has been bolstered by the launch of the first US bitcoin futures ETF in October last year and business adoption of bitcoin and cryptocurrency is growing. slowly.
Earlier this week, the Canadian arm of accounting giant KPMG announced that it had added both bitcoin and ethereum to its balance sheet, while Elon Musk’s Tesla said the value of its holdings in bitcoins had reached over $2 billion.