BlackRock to Use Kraken Subsidiary for Crypto Offering
The asset manager will use CF Benchmarks' bitcoin index.
BlackRock (BLK), which is the world's largest asset manager, will use crypto exchange Kraken's CF Benchmarks’ bitcoin index for its new crypto offering.
Last month, BlackRock teamed up with Coinbase (COIN), another crypto exchange, to make bitcoin directly available to its institutional clients. Shortly after, BlackRock launched a spot bitcoin private trust for U.S.-based institutional investors.
“The launch of BlackRock’s bitcoin fund is a sign of how far crypto has matured as an asset-class,” CF Benchmarks CEO Sui Chung told CoinDesk.
“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,” he added.
CF Benchmarks falls under the "crypto facilities" group of companies, a member of Payward Inc., which owns and operates crypto exchange Kraken. Kraken bought Crypto Facilities in a deal valued at least $100 million in 2019.
BlackRock didn’t immediately respond to a request for comment.
The Block first reported the news Friday.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.