BlackRock set to index Bitcoin (BTC) prices
BlackRock, the world’s largest asset manager, is on the verge of sealing its position in the cryptocurrency industry. Shortly after its latest foray into digital assets, the asset management giant is seeking to use a Kraken subsidiary in its BTC offering index.
CF Benchmarks will operate the asset manager’s BTC offering
Reports have emerged of a BlackRock and Krakens CF Benchmarks partnership. The reports suggest that the trillion dollar asset manager will use CF Benchmarks’ benchmarks for its BTC indices. Generally speaking, BlackRock’s entry into the cryptocurrency space requires it to use a benchmarking standard. As per recent reports, the firm has chosen the Kraken subsidiary for this.
CEO of CF Benchmarks, Sui Chong noted that BlackRock’s private BTC trust fund highlights the growth of Bitcoin. Chong’s comment reflects the reality of things regarding Bitcoin and cryptocurrency adoption. Despite the seemingly never-ending Crypto Winter, the use of digital assets has increased in recent times as exposure increases.
As a provider of robust, high-integrity benchmarks that enable asset managers to properly value their financial products, CF Benchmarks is proud to have played this integral role in helping to facilitate the entry of new investors and capital into the still emerging asset class,
Chong said, speaking on the matter.
However, BlackRock has not yet commented on the development.
BlackRock’s interest in BTC is growing
In general, indexing of cryptoassets is an integral part of digital asset products. CF Benchmarks is proud to be one of the most trusted benchmarking providers in the cryptocurrency industry. The London-based firm’s benchmarks are trusted and used by several key players such as the Chicago Mercantile Exchange (CME) Group, the world’s largest derivatives market.
Launched in 2017, CF Benchmarks has grown to enviable acclaim. After launch, the firm had only one product: the Bitcoin benchmark rate. CME became the firm’s first customer with its utilization of the benchmark interest rate. The company has grown to serve companies across several countries globally. BlackRock is the last client on this list.
BlackRock’s interest in BTC is growing. On August 4, the company entered into a partnership with the American exchange Coinbase. The partnership will give BlackRock’s institutional Aladdin clients access to Coinbase’s institutional-targeted products, including custody and trading.
A week after that, the asset manager launched its private BTC trust. The investment product will give BlackRock clients direct access to the first-born crypto. Now BlackRock will use CF Benchmarks for its BTC product indexing.
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