After BlackRock launched its own crypto-themed exchange-traded fund in April, the world’s biggest asset manager revealed a partnership with crypto exchange Coinbase.
Coinbase Partners With BlackRock
Coinbase has inked a new deal with the world’s biggest asset manager, BlackRock.
In a blog post on Thursday, the US crypto exchange revealed its partnership with BlackRock, providing the asset manager’s clients with a range of crypto products and services. Via Coinbase Prime, the exchange’s institutional platform, BlackRock’s “Aladdin” clients will access crypto trading, custody, prime brokerage and reporting capabilities in line with the exchange’s own institutional clients.
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In other words, BlackRock clients have direct access to Bitcoin via Coinbase Prime. BlackRock’s Head of Strategic Ecosystem Partnerships, Joseph Chalom, commented on the development, saying:
“This connectivity with Aladdin will allow clients to manage their bitcoin exposures directly in their existing portfolio management and trading workflows for a whole portfolio view of risk across asset classes.”
The partnership between BlackRock and Coinbase underlines how the needle of adoption tends to move in one direction for cryptocurrencies. In February, rumours of the asset manager’s plans for its institutional clients surfaced. BlackRock CEO Larry Fink has endorsed Bitcoin in recent years, stating that he is “fascinated” with the industry and its potential to evolve into a “great asset class”.
Recently, the asset manager launched an exchange-traded fund with a focus on cryptocurrencies and tech companies. The ETF features an 11.45% allocation to Coinbase.
Exchanging hands at $88 at press time, Coinbase’s stock has increased 43% in August.
But the upswing comes after a substantial drawdown that saw Cathie Wood’s Ark Invest sell more than 1.4 million shares at around $53. Shares of the top US crypto exchange have recovered in line with US equities over the last week, as risk assets witness a modest comeback on the back of improving market conditions.
The speed at which the stock stock advanced caused trading to halt, in line with legacy exchange rules.
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