BlackRock, the world’s largest wealth management firm, entered the cryptocurrency market. BlackRock confirmed this later this week. To be able to open up the cryptocurrency market, BlackRock is forming a strategic partnership with cryptocurrency exchange Coinbase. Their shares jumped more than 50% in a week on the news.
For the cryptocurrency market, a strategic partnership can mean a lot of money in addition to prestige. You can find the rest of the behind the project below.
Who is BlackRock?
BlackRock is one of the world’s largest wealth managers. The American company and its CEO, Larry Fink, are best known for their investment vehicle “Aladdin.” Aladdin is a “super software” for investment data analysis, the invention of CEO Larry Fink. It makes BlackRock the largest wealth manager in the world. BlackRock now manages more than $10 trillion in assets. These assets are often represented by ETFs. For example, the most well-known ETF brand “ishares” belongs to Blackstone. In addition to private investors, the firm’s clients include corporations and states.
What does this mean for the cryptocurrency market?
Blackrock brings a lot of trust and prestige to the cryptocurrency market. Blackstone can already influence prices through its market power and reputation. Most importantly, the partnership with Coinbase should bring confidence to the market. In addition to the factors of trust and prestige, there is a particular factor of production: capital. If BlackRock opens up the opportunity to invest in bitcoin, ethereum and the company, it will enable millions of customers to discover “crypto” investment opportunities for themselves. With customers, billions of dollars enter the market.
The impact of market entry
The trust established brings new and existing cryptocurrency investors into the market. Whether through ishares ETFs or other products, the cryptocurrency market could go into a frenzy. The logical consequence of this would be a price increase — first for the big, well-known currencies, and then for the lesser-known altcoins.
In addition, BlackRock works with a wide variety of corporate clients, governments and even central banks. Even sovereign wealth funds and pension plans are a large client base for wealth managers. According to BlackRock, these customers want to participate in the market, thereby driving the market forward. For the cryptocurrency industry, this may mean more than just capital.
Total cryptocurrency market capitalization in USD
The cryptocurrency market is already in an uptrend. This important fundamental news is sure to add more positivity to the cryptocurrency market.
The entry of Blackrock into the market has been a boon for the cryptocurrency industry. Thanks to BlackRock’s many partnerships, the cryptocurrency industry can build the basic framework for the next bull run. Especially since, in addition to the related partnerships, capital should also flow into the market. However, the time factor should not be underestimated. It will be a while before BlackRock rolls out the corresponding products and actually makes them available to the group’s customers.
As of now, the partnership with Coinbase has brought prestige and trust to the industry, but long-term capital and strategic partnerships will follow.
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Source of information: Compiled from CRYPTOTICKER by 0x Information.The copyright belongs to the author Rudy Fares, and may not be reproduced without permission