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What is BLACKROCK

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1. What is BlackRock?

BlackRock's Introduction to Cryptocurrency

  1. Uniqueness: BlackRock views Bitcoin as a global, decentralised, fixed-supply, non-sovereign asset, whose risk and return drivers are fundamentally different from traditional asset classes, exhibiting intrinsic non-correlation in the long term.

  2. Investment Viewpoint: BlackRock believes that the adoption trajectory of Bitcoin may be driven by concerns regarding global currency stability, geopolitical stability, the sustainability of US fiscal policy, and US political stability, contrasting it with the general relationship affecting traditional risk assets.

  3. Financial Instrument: BlackRock CEO Larry Fink has stated that Bitcoin is a legitimate financial instrument, akin to digital gold.

  4. ETF Products: BlackRock has launched a Bitcoin ETF (IBIT), allowing investors to invest in Bitcoin through the stock market without needing to purchase actual Bitcoin.

  5. Transformation: BlackRock CEO Larry Fink's journey from initially questioning Bitcoin to later becoming an advocate shows a shift in attitude towards cryptocurrency.

2. Who founded BlackRock?

BlackRock is not a cryptocurrency company, but rather the world's largest asset management firm. It was founded by Larry Fink in 1988, primarily focusing on asset management, risk mitigation, and advisory services.

BlackRock's Attitude and Involvement in Cryptocurrency:

  • Early Views (2017-2018): Larry Fink held a highly sceptical view of Bitcoin, previously referring to it as the "money laundering index."
  • Shift in Perspective (Post-2022): Fink's stance on digital assets has notably evolved, viewing Bitcoin as a legitimate financial instrument that can provide potential uncorrelated returns.
  • Participation in the Crypto Market: BlackRock submitted a filing for a spot Bitcoin ETF through its subsidiary iShares and partnered with Coinbase to launch spot Bitcoin products aimed at US institutional clients.

Hence, BlackRock is not a cryptocurrency company, but the world's largest asset management firm that has increasingly engaged with and invested in the cryptocurrency market in recent years.

3. Which venture capitals have invested in BlackRock?

Based on the provided information, here are the cryptocurrency investment details related to BlackRock:

  1. BlackRock's Spot Bitcoin ETF Investments: BlackRock has issued a spot Bitcoin ETF (IBIT), attracting several institutional investors, including Bracebridge Capital and Boothbay Fund Management.

  2. Institutional Investment in BlackRock's Cryptocurrency Products: Several institutional investors, such as Bracebridge Capital and Boothbay Fund Management, have invested in BlackRock's spot Bitcoin ETF (IBIT).

  3. BlackRock's Collaborations in Cryptocurrency: BlackRock has partnered with other firms to launch cryptocurrency products, such as collaborating with Grayscale to launch a spot Bitcoin ETF.

Below are the specific institutional investors investing in BlackRock's spot Bitcoin ETF:

  • Bracebridge Capital: Invested $100 million in BlackRock's spot Bitcoin ETF (IBIT).
  • Boothbay Fund Management: Invested $149.8 million in BlackRock's spot Bitcoin ETF (IBIT).

This information indicates that BlackRock holds significant influence in the cryptocurrency sector and has attracted multiple institutional investors.

4. How does BlackRock operate?

BlackRock's operations in the cryptocurrency space are primarily reflected in the following aspects:

  1. Bitcoin ETF:

  2. BlackRock launched a spot Bitcoin ETF (iShares Bitcoin Trust, IBIT), one of the first spot Bitcoin ETFs to be approved by the SEC.

  3. This ETF allows investors to invest in Bitcoin through traditional financial channels, enhancing the credibility and market acceptance of Bitcoin.

  4. Tokenized Fund BUIDL:

  5. BlackRock launched the tokenized fund BUIDL (BlackRock USD Institutional Digital Liquidity Fund) on Ethereum, which is a blockchain-based money market fund.

  6. BUIDL accepts USDC and US dollars for deposits, allowing investors to purchase RWA (Real World Asset) investments through on-chain contracts, receiving BUIDL tokens as proof at par with the US dollar.

  7. BUIDL tokens can only circulate in whitelisted addresses, facilitating interoperability and improving capital efficiency through smart contracts.

  8. Partnerships:

  9. BlackRock has partnered with Coinbase, enabling institutional clients to use the Aladdin software toolkit for managing cryptocurrency portfolios and conducting risk analyses.

  10. BlackRock has also collaborated with Circle Internet Financial, holding a minority stake and managing over $25 billion in reserves within government money market funds, supporting Circle's USDC.

Overall, BlackRock deepens its engagement in the cryptocurrency market through the launch of the Bitcoin ETF and the tokenized fund BUIDL, while providing broader investment opportunities and management tools via collaboration with other cryptocurrency participants.

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