The world’s largest investment management firm BlackRock’s Bitcoin Private Trust will use the Kraken subsidiary CF Benchmarks Bitcoin Index as a benchmark for issuance, The Block reported.
Last month, BlackRock partnered with Coinbase to provide its institutional clients with cryptocurrency trading services. A few days later, the company announced the launch of the Bitcoin Private Trust, a Bitcoin Spot.
The product will seek to track Bitcoin’s performance and will bring fewer fees and debt to the trust company.
CF Benchmarks is a member of the Crypto Facilities group of companies and a member of the Payward Group of owners and operators of cryptocurrency exchange Kraken Exchange.
“Despite the sharp decline in the digital asset market, we continue to see strong interest from some institutional clients on how to leverage our technology and product capabilities to efficiently and cost-effectively access these assets,” BlackRock said in a statement.
The investment firm holds more than $10 trillion in assets under management (AUM).
Sui Chung, CEO of CF Benchmark, noted that institutional interest has increased over the past few months compared to six months ago and added that:
“The understanding of digital assets themselves is much greater than it was, people we talk to now understand the difference between bitcoin and ether.”
CF Benchmarks is trying to become the MSCI index of the crypto world.
The S&P Dow Jones Indices, a global leader in providing investable and benchmark indices to the financial launched index funds for cryptocurrencies in 2021.
BlackRock has long been focused on the crypto space, and the financial giant said its core focus in the industry remains on permissioned blockchains, stablecoins, cryptoassets, and tokenization.
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