MicroStrategy's Significant Bitcoin Impairment Losses May Mislead: Berenberg
Bitcoin Approaches Formation of Death Cross as Dollar Index Hints at Golden Crossover
SEC Finds 'No Grounds' to Deny Conversion of Bitcoin ETF, Grayscale Says
Some cryptocurrency aficionados said that the Aug. 11 announcement by BlackRock, the largest asset management in the world, to introduce a private bitcoin trust for its clients, could legitimate the virtual currency in the eyes of more established investors.
With its new private trust, BlackRock will be able to provide bitcoin to its institutional clients, track its performance, provide direct exposure to its price, and of course, engage in option trading.
BlackRock stated in a news release that "despite the sharp decline in the market for digital assets, we are nevertheless seeing strong interest from some institutional clients in how to efficiently and affordably access these assets utilizing our technology and product capabilities."
The announcement of the cooperation with Coinbase to give users of the Aladdin platform access to bitcoin trading and custody services came shortly after the company made that announcement. These developments demonstrate how traditional investors and organizations, like banks and hedge funds, are entering the cryptocurrency market, proving the long-term viability of digital assets.
These recent endorsements provide cryptocurrencies an even stronger sense of legitimacy, integrating them into the more established financial sector and so enhancing accessibility for both new and experienced investors.
But does support from a large investment management company go against what Bitcoin was intended to stand for? especially considering that Larry Fink, CEO of BlackRock, referred to bitcoin as a "indicator of money laundering" just five years previous.
In 2009, the chaotic birth of Bitcoin signaled the possible democratization of finance. A more open and secure approach to currency for everybody was promised by blockchain technology. Has the top cryptocurrency abandoned its revolutionary roots now that it is popular in Wall Street investment portfolios?
The shares of Coinbase reached an all-time low of $47.02 at the end of June. However, the recent rising trend in the share price of the cryptocurrency exchange may be partially attributed to the news of BlackRock and Coinbase's relationship.
Online doubters believe BlackRock's cooperation with the once-top-of-its-game Coinbase is nothing more than a power grab by a controlled financial institution because Coinbase shares are still down 75% from their peak.
The news has further fueled concerns that Bitcoin's current crypto winter is not merely a passing phase but rather the start of its demise, especially in light of the potential for additional regulations from the US Congress.
Only time will tell, as is typically the case with the market.
-------
