The crypto industry is getting some support from mainstream businesses as it expands its reach globally. Businesses want to explore the benefit the crypto industry and investments would give them on their journey in gaining widespread adoption. 2020 was a significant year for Bitcoin investment. Did Not only institutional monies fill the space, leading to the price surge, but they also gained strong support from well-known firms who now have crypto holdings or provide crypto-related services.
Despite the gradual adoption, the digital asset industry will face new hurdles in optimizing the user experience with the regulations countries laid down. Last year, MicroStrategy had an impressive crypto holding, and the business kept increasing its assets at regular intervals. Situations like this might have influenced prominent companies like BlackRock into investing in the industry.
SEC websites reveal new BlackRock fillings
The Securities and Exchange Commission recently updated its platform with new fillings from the investment company regarding the cryptocurrency industry. The filling suggests that BlackRock hopes to join the crypto space through BTC. Institutional investors mostly prefer Bitcoin due to its dominance and popularity, so it’s not surprising that the investment firm plans to enter the market through it.
In a bid to establish its plans, the firm’s CIO, Rick Rieder, opined that Bitcoin was more useful than gold. Gold’s recent performance necessitated the executive’s comment as the firm seeks to reduce gold exposure.
The website released the filling yesterday, and the space grew excited with another prominent firm joining the growing industry. Based on the filling, SEC said each fund might utilize derivatives that derive their value from specific securities.
Apart from SEC’s comment, the investment firm already hinted at moving to the crypto industry since last year. BlackRock opines that the changing times call for a rethink of an investment portfolio. From new reports, it seems the business wants to focus on only Bitcoin.
BlackRock hints at blockchain investment
Even months before the firm’s filling, it was already moving internally to accommodate its new portfolio. The business wanted to include a blockchain specialist in its team to prepare for its 2021 entry. The specific it gave concerning the hire was someone who understood the industry.
It’s excellent to note that the investment company is the world’s largest asset manager, having over $8 trillion under its management. The new moves show that BlackRock’s presence in the crypto space would essentially change things for Bitcoin and push it into a world of new highs.
Grayscale, which is a prominent player in the space, has only $30 billion in assets. Compared to both businesses, BlackRock is far larger than the industry’s prominent investment firm, meaning Grayscale could see new competition. Grayscale helped Bitcoin skyrocket by buying large volumes of assets at specific intervals to keep the crypto afloat.
The time BlackRock wants to enter is a good time because Bitcoin needs a more significant push to help it get over the declining prices. Presently, Grayscale has one of the world’s largest crypto holdings, and it keeps attracting new investors with its structured investment plans.