Investment management firm BlackRock (BLK) has launched a new private trust that will track the performance of Bitcoin (BTC).
BlackRock, which is the world’s biggest asset manager with more than $10 trillion U.S. under management, said that Coinbase (COIN) will serve as the new trust's custodian.
BlackRock and Coinbase recently formed a partnership aimed at providing investors with greater access to cryptocurrencies.
BlackRock said in a blog post that the private trust would be available only to institutional clients in the U.S. and not to retail investors.
The market capitalization of cryptocurrencies has fallen to less than $1 trillion U.S. this year from more than $3 trillion U.S. last fall as prices for the digital assets have plunged across the board.
However, BlackRock chief executive officer (CEO) Larry Fink has said that his firm will offer clients access to cryptocurrencies if that is what they want.
BlackRock stock is down 20% this year at $728.65 U.S. per share. Coinbase’s stock has declined 67% this year to trade at $84 U.S. a share.
