AUM

Coinbase Partners With World’s Largest Asset Manager Blackrock to Give Aladdin Clients Access to Cryptocurrencies

04/08/2022 by Idelto Editor

Coinbase Partners With the World’s Largest Asset Manager Blackrock to Give Aladdin Clients Access to Cryptocurrencies

On August 4, the head of Coinbase Institutional, Brett Tejpaul, and the vice president of institutional product, Greg Tusar, announced that Coinbase has been selected by the financial giant Blackrock to provide the firm’s Aladdin platform access to cryptocurrencies.

Blackrock Chooses Coinbase to Connect Aladdin Clients to Crypto

Coinbase’s institutional arm will help the world’s largest asset manager, Blackrock (NYSE: BLK), provide Aladdin’s institutional clients with access to digital currencies. The company noted that Blackrock chose Coinbase due to the firm’s “scale, experience, and integrated product offering.” The publicly traded company Coinbase (Nasdaq: COIN) has a long history in the crypto space since it was founded in 2012 by Brian Armstrong and Fred Ehrsam.

The New York-based multinational investment management corporation Blackrock is one of the largest financial institutions worldwide. Blackrock deals with roughly $10 trillion in assets under management (AUM) recorded in 2021. Coinbase considers the partnership with Blackrock and Aladdin a “milestone” for the crypto asset company. The Aladdin platform stands for the Asset, Liability, Debt, and Derivative Investment Network and it’s an investment management and trading platform designed specifically for Blackrock’s institutional clients.

“Blackrock and Coinbase will continue to progress the platform integration and will roll out functionality in phases to interested clients,” Tejpaul and Tusar wrote on Thursday. In mid-June, Rick Rieder, chief investment officer (CIO) of global fixed income at Blackrock, explained that cryptocurrencies like bitcoin (BTC) are durable assets. In April, Blackrock launched a blockchain exchange-traded fund and Blackrock was named “a primary asset manager of USDC cash reserves” the same month.

Blackrock Exec: ‘Institutional Clients Are Increasingly Interested in Gaining Exposure to Digital Asset Markets’

Joseph Chalom, the global head of strategic ecosystem partnerships at Blackrock, remarked that Blackrock’s clientele has been gravitating toward digital currencies. “Our institutional clients are increasingly interested in gaining exposure to digital asset markets and are focused on how to efficiently manage the operational lifecycle of these assets,” Chalom said on Thursday. The Blackrock executive added:

This connectivity with Aladdin will allow clients to manage their bitcoin exposures directly in their existing portfolio management and trading workflows for a whole portfolio view of risk across asset classes.

Following the Coinbase and Blackrock partnership announcement, COIN shares increased more than 16% higher during the morning trading sessions on Thursday (EST). However, COIN is down 72.46% in value from the stock’s all-time price high. Moreover, at the end of June, Goldman Sachs downgraded COIN to a sell rating.

The news follows the alleged U.S. Securities and Exchange Commission (SEC) probe reported on July 25, and the company’s recent European expansion. In mid-June, Coinbase also revealed it had to cut back 18% of the firm’s workforce to “ensure [Coinbase stays] healthy during this economic downturn,” according to the company’s co-founder and CEO Brian Armstrong.

What do you think about Coinbase partnering with Blackrock and integrating with the firm’s Aladdin platform? Let us know your thoughts about this subject in the comments section below.

Study: AUM of Crypto Investment Products at Record Lows in June, Trust Products Garner Lowest Total Since December 2020

02/07/2022 by Idelto Editor

The latest data from Cryptocompare shows that assets under management (AUM) of crypto investment products reached record lows during the month of June. The data also shows 21 Shares Short Bitcoin ETP as the only digital investment product that registered a positive 30-day return (30.8%) as of June 23.

Three Arrows Capital Insolvency Factor

The AUM of crypto investment products dropped to record lows in the month of June 2022, the latest data from Cryptocompare has shown. According to the regulated benchmark administrator and digital asset data firm, this drop in the AUM was primarily caused by the uncertainties surrounding the future of crypto lending companies like Three Arrows Capital.

As the data shows, crypto exchange-traded funds (ETFs) had the most significant drop, a 52.0% decline to $1.31 billion in AUM. On the other hand, trust products which account for 80.3% of the market fell by 35.8% finishing the month at $17.3 billion. Exchange-traded commodities (ETCs) and exchange-traded notes (ETNs) fell by 36.7% and 30.6% to $1.34 billion and $1.61 billion, respectively. Summarizing the findings, Cryptocompare said:

All four product types made new record lows with Trust products recording the lowest AUM since December 2020, while ETCs AUM reached its lowest since October 2020. ETNs and ETFs followed, recording their lowest AUM since January 2021 and April 2021 respectively.

21 Shares Bucks Trend

Meanwhile, the report notes that 21 Shares Short Bitcoin ETP is the only digital investment product that registered a positive 30-day return (30.8%) as of June 23. As of June 27, the ETP had an AUM of $16.5 million, which is an all-time high for the product. After rising for three consecutive months, this ETP has emerged as one of the few products that appears to take advantage of current market conditions, the report said.

In contrast to the 21 Shares, Purpose and Coinshares ETPs had the largest outflows in BTC and ETH during the same period.

“Purpose Bitcoin ETF (BTCC) sold 18,170 BTC while 3iq Coinshares Bitcoin ETF (BTCQ) saw 7,384 BTC flow out of the fund (as of 24th June). Overall, the two registered drops of 56.7% and 57.1% in AUM in June, respectively. Proshares Bitcoin Strategy ETF (BITO) saw the largest inflow after purchasing 7,264 BTC during the month,” the digital asset data firm’s report noted.

The data also shows that 3iq Coinshares Ether ETF (ETHQ), which had an outflow of 26,499 ETH, recorded the biggest outflow among ethereum products during the period. It was followed by Purpose Ether ETF (ETHH) which saw an outflow of 24,409 ETH in June.

What are your thoughts on this story? Let us know what you think in the comments section below.

13 Crypto Exchanges Custody 7% of the Crypto Economy, Coinbase Dominates With $56.2B AUM

02/01/2022 by Idelto Editor

As 2022 begins, 13 different cryptocurrency exchange platforms have more than a billion dollars each in digital currencies held in reserves. Between all 13 trading platforms, the group of exchange platforms hold a whopping $165.25 billion worth of bitcoin, ethereum, and tether.

13 Crypto Exchanges Hold a Billion or More in Crypto Equalling Over $165 Billion in Assets Under Management

At the time of writing, the crypto economy is worth $2.3 trillion and 7.10% of the aggregate or $168 billion is made up of stablecoins. Furthermore, statistics on January 2, 2022, indicate that 13 crypto-asset trading platforms hold a billion dollars or more in cryptocurrencies.

The 13 exchanges include Coinbase, Binance, Huobi Global, Kraken, Okex, Gemini, Bitfinex, Bittrex, Bitflyer, Coincheck, Bitstamp, and Bybit respectively. Coinbase is the leader, in terms of crypto reserves held on Sunday, with $56.2 billion in crypto assets under management (AUM).

$40.27 billion of Coinbase’s reserves is made up of bitcoin (BTC), with 853,530 BTC in custody. The second-largest exchange in terms of crypto AUM is Binance with $24.85 billion today. Binance has 370,390 BTC, 3.59 ETH, and 1.24 billion USDT under custody.

All 13 exchanges hold approximately 165.25 billion in crypto assets on January 2, 2022, which equates to 6.98% of the $2.3 trillion crypto economy. Bybit maintains the 13th position, in terms of crypto reserves, and holds $1.44 billion in digital assets.

10 Crypto Asset Trading Platforms Hold More Than $50 Million, 23 Exchanges Custody Over a Million in Crypto Reserves

Approximately ten crypto-asset exchanges command more than $50 million in crypto AUM. 23 exchanges hold a million dollars or more in crypto AUM and dozens of crypto exchanges have no available reserve data.

This report’s crypto exchange reserve data published on January 2, 2022, at 8:15 a.m. (EST) was recorded by Bituniverse, Peckshield, Chain.info, and Etherscan.

The only organization that surpasses the bitcoin (BTC) reserves Coinbase holds is Grayscale Investment’s Bitcoin Trust (GBTC), and the trust’s 648,069 BTC under custody. The Bitcoin Trust has 3.086% of the 21 million capped bitcoin supply.

Another entity that has more than 100K in BTC assets is Block.one with 140,000 BTC under management, while the publicly-listed company Microstrategy holds 124,391 BTC today. Grayscale, Block.one, and Microstrategy are the only non-exchange entities with 100K BTC or more.

What do you think about the 13 crypto exchanges with $165 billion under management? Let us know what you think about this subject in the comments section below.

Another Hedge Fund Gets Crypto Exposure via Grayscale’s GBTC

08/04/2021 by Idelto Editor

Millennium, the U.S.-based alternative investment management firm, has become the latest hedge fund to get exposed to cryptocurrencies via Grayscale Investments’ bitcoin trust. However, the extent of Millennium’s exposure to the crypto asset has not been disclosed as both Millennium and Grayscale executives have refused to comment.

Nevertheless, a report by The Street says two sources claiming to have knowledge of the deal have confirmed Millenium’s acquisition of the shares. The report also quotes one of the two unnamed sources suggesting that Millennium, which has $48 billion worth of assets under management (AUM), could have been drawn to the crypto asset by the lingering discount on GBTC shares. At the time of writing, the discount on GBTC shares had dropped further to 11.45%.

In the meantime, the sources in the report assert that Millennium’s indirect investment into BTC represents yet another big endorsement for the crypto asset. The report said:

The fact that Millennium having skin in the GBTC game, to begin with, is likely another bullish indicator for bitcoin as an asset class. The holdings also suggest that Millennium’s synthetic crypto exposures are more substantial than what has previously been reported.

In the meantime, the same report suggests that Millenium might just be “the largest asset manager yet to emerge in the crowded GBTC trade, likely a bullish indicator for bitcoin itself.” Yet despite this bullish signal, Grayscale recently revealed its plan to eventually convert “the trust into a bitcoin exchange-traded fund (ETF).” An ETF enables the direct holding of BTC and this provides more favorable liquidity terms than a trust structure.

What are your thoughts on the revelations that Millennium is invested in crypto via GBTC? You can tell us what you think in the comments section below.

SEC Filing Shows Blackrock Held Bitcoin Futures Contracts Worth $6.15 Million

03/04/2021 by Idelto Editor

After signaling its intention to get exposed to bitcoin, Blackrock, the world’s largest asset manager, has now revealed its initial investments toward the crypto asset. According to the asset manager’s filing with the Securities and Exchange Commission (SEC) on March 31, Blackrock, through its Global Allocation Fund, held 37 bitcoin futures contracts worth $6.15 million.

According to one report, the contracts, which expired on March 26, had already appreciated in value by some $360,458. Meanwhile, with this modest investment into bitcoin futures, Blackrock’s SEC filing proves the leading asset manager has acted on its promise to invest in the crypto asset.

The holdings, 37 contracts in total, were about 0.03% of the firm’s Global Allocation Fund. Earlier in the year, a Bitcoin.com News report quoted Blackrock CIO Rick Rieder suggesting that his organization had “started to dabble” in bitcoin. With this SEC filing, Blackrock has now officially confirmed its pivot towards the crypto asset.

In the meantime, with this filing, Blackrock, which has nearly $9 trillion worth of assets under management (AUM), has also increased its indirect exposure to the crypto asset. Prior to the SEC filing, Blackrock acquired over one million class A common stock in the Nasdaq listed Microstrategy, one of the first major companies to add bitcoin to their balance sheet.

Blackrock has been discussing the benefits of bitcoin a great deal over the last few months as Blackrock executive, Russ Koesterich, has claimed: “gold’s ability to hedge against inflation has been somewhat exaggerated.” And despite the crypto asset’s volatility, Blackrock’s chief investment officer of global fixed income, Rieder has stressed that “people are looking for storehouses of value.”

What are your thoughts on Blackrock’s investment in BTC futures? Tell us what you think in the comments section below.