- Investment management company BlackRock is launching a new cryptocurrency fund
- The company has already pooled $100 million USDC issued on the Ethereum blockchain for tokenized funds.
Investment management giant BlackRock has taken a new step forward in its cryptocurrency venture. The company is considering launching a digital asset fund, according to a new filing with the U.S. Securities and Exchange Commission (SEC).
The fund will be launched in collaboration with digital securities issuance platform Securitize. The fund, founded in the British Virgin Islands, has already pooled $100 million in USDC, the second largest stablecoin issued on the Ethereum blockchain. Additionally, the fund requires investors to contribute a minimum of $100,000.
BlackRock brings crypto to investors
This marks the company's third notable move to offer cryptocurrencies to institutional clients. Notably, BlackRock was the company that reignited hopes in the crypto market last year that a spot Bitcoin ETF would be approved.
This move was quickly echoed by other prominent companies such as Bitwise and Galaxy Digital. After a flurry of applications, the SEC finally approved multiple Spot Bitcoin ETFs at once on January 10, 2024. Although this approval did not immediately have a significant impact on Bitcoin or the crypto market as a whole, the market did record gains. In the last two months.
BTC surged to $73,738.00 last week, setting a new all-time high. However, prices have been trending downward this week. According to CoinMarketCap, as of this writing, BTC is trading at $64,177, giving it a market cap of over $1 trillion. The coin experienced a decline of more than 6% in the past 24 hours, but trading volume remained at over $32 billion. Notably, similar price corrections were seen in other crypto markets.
Other products for institutional investors
While the cryptocurrency market is busy moving up and down in prices, American financial giants are busy offering new products to their customers. Apart from Bitcoin, BlackRock has already taken the necessary steps to introduce the Spot Ethereum ETF to its customers. Fidelity, the American multinational financial services company, made a similar move, but took it a step further by looking at staking. The company allows investors to get the most out of their crypto investments by allowing traders to stake a portion of their ETH.
