BlackRock, the world’s largest asset manager, is on the verge of sealing its position in the cryptocurrency industry. Shortly after its most recent dabble into digital assets, the asset management giant is looking to utilize a Kraken subsidiary firm in its BTC offerings index.
CF Benchmarks will power the asset manager’s BTC offerings
Reports have surfaced of a BlackRock and Kraken’s CF Benchmarks partnership. The reports suggest that the trillion-dollar asset manager will use CF Benchmarks’ standards for its BTC indexes. In general, BlackRock’s entry into the cryptocurrency space requires it to use a benchmarking standard. Per recent reports, the firm has chosen the Kraken subsidiary for this.
CEO of CF Benchmarks, Sui Chong noted that BlackRock’s private BTC trust fund highlights the growth of Bitcoin. Chong’s comment reflects the reality of things with regard to Bitcoin and cryptocurrency adoption. Despite the seemingly incessant Crypto Winter, the adoption of digital assets have surged in recent times as exposure grows.
As the provider of the robust high-integrity benchmarks that enable asset managers to properly value their financial products, CF Benchmarks is proud to have played this integral role in helping facilitate the entrance of new investors and capital into the still-nascent asset class,
Chong said, speaking on the matter.
Nonetheless, BlackRock has not commented on the development yet.
BlackRock’s interest in BTC is growing
Generally, crypto asset indexing is an integral part of digital asset products. CF Benchmarks prides itself on being one of the most reliable benchmarking providers in the cryptocurrency industry. The London-based firm’s benchmarks are trusted and utilized by several key players such as Chicago Mercantile Exchange (CME) Group, the world’s largest derivatives marketplace.
Launched in 2017, CF Benchmarks has grown to enviable recognition. Following its launch, the firm had only one product: the Bitcoin reference rate. CME became the firm’s first client with its utilization of the reference rate. The company has grown to serve companies across several countries globally. BlackRock is the latest client on this list.
BlackRock’s interest in BTC is growing. On August 4, the firm entered a partnership with American exchange Coinbase. The partnership would allow BlackRock’s institutional Aladdin clients access to Coinbase’s institution-targeted products, including Custody and trading.
A week after that, the asset manager launched its private BTC trust. The investment product would provide BlackRock clients direct access to the firstborn crypto. Now, BlackRock will be using CF Benchmarks for its BTC product indexing.