- A new cryptocurrency fund is being created for the investment management company – Blackrock
- The company has already raised $100 million, issued on the Ethereum blockchain, for the purpose of the token fund.
Investment management giant Blackrock has taken a new step in its cryptocurrency project. According to a new filing with the US Securities and Exchange Commission (SEC), the US company is looking to introduce a digital asset fund.
The fund will be launched in cooperation with Securitize, a digital securities issuance platform. Founded in the British Virgin Islands, the fund has already accumulated $100 million in USDC – the second largest stablecoin, which is issued on the Ethereum blockchain. In addition, the fund will ask investors to invest at least $100,000.
BlackRock brings cryptocurrencies to investors' doors
This will be the company's third notable step in bringing cryptocurrencies to its institutional clients. Notably, Blackrock was the company that reignited expectations in the cryptocurrency markets by getting its spot Bitcoin ETF approved last year.
This move was quickly mirrored by other prominent companies such as Bitwise and Galaxy Digital. With applications coming through its door, the SEC finally approved multiple Bitcoin ETFs simultaneously on January 10, 2024. Although the approval did not immediately have a massive impact on Bitcoin or even the cryptocurrency market as a whole, it was recorded The market has gained over the past two months.
BTC also hit a new all-time high, with the coin rising to $73,738.00 last week. However, this week the price has moved on a downward path. According to CoinMarketCap, at the time of publication, BTC was trading at $64,177 with a market cap of over $1 trillion. The coin recorded a decline of more than 6% over the past 24 hours, while its trading volume remained at more than $32 billion. Notably, a similar price correction was seen with the rest of the cryptocurrency market as well.
More products for institutional investors
While the cryptocurrency market is busy with up and down price movements, US financial giants are busy offering new products to their clients. Apart from Bitcoin, Blackrock has already taken measures to bring Ethereum ETF to its clients. Fidelity – an American multinational financial services company – also took a similar step but took it one step further by adding a stake into the picture. The company will allow traders to take a share of their ETH, allowing investors to make the most of their cryptocurrency investments.
