$9.5T Asset Manager BlackRock is Studying Crypto, “We Believe That Will Play A Very Large Role”

$9.5 Trillion Asset Manager BlackRock is Studying Crypto, CEO says “We Believe That Will Play A Very Large Role”

Larry Fink, the CEO of the world’s largest asset manager, BlackRock doesn’t understand much about Bitcoin but said he sees huge opportunities in digitized currencies.

“I see huge opportunities in a digitized crypto-blockchain-related currency and that’s where I think it’s going and that’s going to create some big winners and some big losers,” he said during his conversation with CNBC.

But when it comes to the trillion-dollar asset BTC, Fink said he is “not a student of bitcoin” and does not know where it’s going to go.

“I can’t tell you whether it’s going to $80,000 or zero.”

“But I do believe there is a huge role for a digitized currency and I believe that’s going to help consumers worldwide.”

Interestingly, Bitcoin jumped 5% to nearly $57,300 on Wednesday, continuing the green month in which the cryptocurrency is up more than 30%.

When further asked about JPMorgan CEO Jamie Dimon calling the leading cryptocurrency “worthless,” Fink said he’s “probably more on the Jamie Dimon camp.”

In an interview this week, Dimon said, “(Bitcoin) makes no difference to me” but added, “Our clients are adults. They disagree. That’s what makes markets.”

But that doesn’t mean, the asset manager isn’t interested in the crypto market as on being asked when he has shifted in his view in offering access to crypto to BlackRock investors, Fink said,

“We’re studying blockchain and the whole concept of crypto and we believe that will play a very large role.”

Back in February, BlackRock’s chief investment officer of global fixed income Rick Reider said the firm had “started to dabble” in crypto assets. Then in a filing with the Securities and Exchange Commission (SEC) dated July 31 showed that the BlackRock Global Allocation Fund had been trading Bitcoin futures. The asset manager giant has also invested millions in Bitcoin mining companies.

On Wednesday, the New York firm reported a 16% increase in revenue to $5.05 billion while its assets under management jumped 21% to $9.46 trillion, as of Sept. 30 from $7.81 trillion a year earlier.

Earlier this week, at the Institute of International Finance, Fink had commented on inflation, saying he doesn’t believe that it is transitory.

“I’m not calling for stagflation — I don’t see any evidence of that — but do I see persistence in inflation? Yes.”

“I think it’s more than transitory related to supply-chain issues and commodity prices.”

While President Rob Kapito said at the time some clients are increasing allocations to various alternatives from 1% to up to 20%, the CEO said some are allocating more to equities.

“I don’t think there’s one global trend of going in and out of one product because [there are] inflationary fears and some clients don’t believe in that.”

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Author: AnTy

Brazilian Asset Manager BTG Launches Bitcoin Trading Platform

Brazilian Asset Manager BTG Launches Bitcoin Trading Platform

Cryptocurrency adoption appears to be kicking into high gear in Latin America, with companies and government organizations embracing crypto more.

The latest organization to embrace the industry is BTG Pactual – a top investment banking and asset management firm in Brazil.

BTG Goes For BTC

Earlier today, local news source The Rio Times confirmed that BTG Pactual launched a new crypto trading platform that allows Brazilian traders to buy and sell cryptocurrencies. The new platform is dubbed Mynt and is open to all Brazilians.

The platform would initially support the trading of Bitcoin and Ether, while other digital assets are expected to follow in the future.

Company chief executive Roberto Sallouti explained that the launch of Mynt was in response to increased demand among locals. He added that besides just letting people buy and trade cryptocurrencies, Mynt would also host educational content to inform crypto newbies and help them make better investment decisions.

Mynt’s launch means that BTG Pactual is the first major Brazilian financial institution to allow customers to participate in cryptocurrency markets. The company is regulated by both the Brazilian central bank and the Brazilian Securities Commission, and it will be looking to operate all its crypto services in line with current regulations.

Mynt represents BTG’s further entry into the crypto market. Earlier this year, Brazil Journal reported that the investment bank had started a crypto investment fund -c allied the Bitcoin 20 Multi-Market Investment Fund. The fund was approved in March, and it was the first Bitcoin fund launched by a Brazilian investment company.

The fund invests20 percent of its assets under management into Bitcoin, while 55 percent is allocated into treasury bonds. 20 percent is allocated to bank deposit certificated, and the other 5 percent to repo operations.

BTG’s Bitcoin fund also partnered with American crypto giant Gemini earlier this year for custody. The partnership will see Gemini Fund Solutions and Gemini Custody – two of Gemini’s subsidiaries – offer custody for BTG’s crypto assets.

South America Opening Up to Crypto

BTG has explained that its objective is to make crypto truly democratized and offer avenues for everyone to invest in the assets, regardless of their purchasing power.

Now that BTG is moving deeper into crypto, it would appear that the industry is finding a home in South America. This year has already seen several developments come from the region, with the most prominent being El Salvador’s decision to accept Bitcoin as an acceptable means of payment in the country.

VISA has also announced plans to integrate Bitcoin payments in Brazil. Earlier this month, Eduardo Abreu, the company’s vice president of new business, told local news source Seu Dinheiro that they plan to integrate crypto as both a store of value and a means of payment. This could be an avenue for even greater crypto adoption in the country.

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Author: Jimmy Aki

$1.5 Trillion Asset Manager Franklin Templeton Eyes Crypto With Latest Filing

$1.5 Trillion Asset Manager Franklin Templeton Eyes Crypto With Latest Filing

The crypto space is seeing a paradigm shift, with more legacy-backed financial institutions gradually transitioning into the blockchain industry. The latest is American multinational holding company Franklin Resources Inc.

$20 Million Total Value For Pooled Venture Fund

According to a Wednesday filing with the US Securities and Exchange Commission (SEC), the investment firm plans to raise $20 million for its Venture Capital Fund dubbed the Franklin Templeton Blockchain Fund I, L.P.

The asset manager admitted in the filing that it had raised $10 million or 50% of the targeted value. The venture is expected to channel the raised funds to blockchain startups and crypto-focused businesses in the coming months.

However, the expected value is minimal given the funds crypto startups gulp in fundraising rounds. Franklin Templeton may likely be testing the SEC’s resolve with the venture fund and could go all out if the results are favorable.

Founded in New York City in 1947, Franklin Resources is a global investment manager with over 12,000 employees spread across 34 countries. It serves clients in 160 countries and provides mutual fund investment services. It is better known as Franklin Templeton, with over $1.5 trillion worth of assets under management (AUM).

Franklin Templeton Diving Deeper Into Crypto

Franklin Templeton has a long history with the cryptocurrency industry.

In 2019, Franklin Templeton joined forces with cloud-based institutional wallet provider Curv to bolster the security of digital shares in its money market fund. This saw the investment firm use Curv’s patented multiparty computation (MPC) to secure its blockchain and connect with the Stellar network.

Franklin Templeton was also a key contributor in the $15 million series A funding round of digital asset data company, Amberdata.

The California-based company has also made overtures in establishing a “Tokenized Asset Development Department” following a job posting advertising for a cryptocurrency research analyst last month.

In the LinkedIn post, Franklin Templeton specified that the successful candidate would research the most liquid and tradable crypto-assets like Bitcoin, Ether, and others. Also, the research analyst will conduct a market overview on decentralized autonomous organizations (DAOs) and build out investment strategies for the firm’s digital products.

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Author: Jimmy Aki

$500B German Asset Manager is Considering Adding Bitcoin to A ‘Handful’ of Private Funds

Union Investment, a $500 billion Germany-based asset manager, is testing a pilot program with Bitcoin exposure certificates. If the program becomes a success, it will also open Bitcoin exposure to other funds.

The certificates will be available in the quarter fourth of this year with the date yet decided.

For this, “We are considering adding bitcoins in small amounts of 1% to 2% maximum to a handful of other funds for private investors,” Portfolio Manager Daniel Bathe told Bloomberg.

Union Investment had its first Bitcoin exposure in its mixed fund at the beginning of this year. These were Delta 1 certificates in private funds that are allowed to invest up to 1% in Bitcoin, and currently, they are just below that, according to Bathe.

With this move into cryptocurrency, Union Investment aims to get ahead of its competitors, with one of the largest ones, DekaBank, not yet offering any fund with Bitcoin exposure. However, a spokesperson from Dekabank, Germany’s largest asset manager, did say in July that the firm was also considering investing in the leading cryptocurrency.

Germany is expected to see a massive wave of crypto adoption after a new law came into effect in August that allowed “Spezialfonds” that are holding $1.8 trillion to invest 20% in crypto.

“We are observing an increased interest of mixed fund managers in crypto assets,” said Kamil Kaczmarski, a consultant for financial service providers at Oliver Wyman in Frankfurt.

Traditional German investment managers are likely to begin their crypto exposure through certificates and other derivatives, as seen with German public bank Sparkassen, which recently made Bitcoin and crypto investment available to its customers via certificates, individual stocks, and ETFs.

The post 0B German Asset Manager is Considering Adding Bitcoin to A ‘Handful’ of Private Funds first appeared on BitcoinExchangeGuide.

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Author: AnTy

Gold-Focused Investment Manager Discloses Exposure to Bitcoin via GBTC

Gold-Focused Investment Manager Discloses Exposure to Bitcoin via GBTC

Investment manager, US Global Investors, which is well-known for specializing in gold and precious metals, disclosed in its latest regulatory filing with the Securities and Exchange Commission (SEC) that it now has exposure to Bitcoin.

The Texas-based company added GBTC shares in three of its funds viz Gold and Precious Metals Fund; Global Resources Fund; and World Precious Minerals Fund.

For the quarter ending June 30, the company reported owning 19,000 shares of Grayscale Bitcoin Trust (GBTC), currently worth just under $740k.

According to the document, the company further categorizes the investment type to be “Equity-common.”

GBTC is currently trading at a discount of 13.94% to the underlying Bitcoin’s price. This discount has been prevailing for the last six months, going as far as 21.23% in mid-May.

While it may come as a surprise that a gold favored firm is investing in cryptocurrency, gold bug Peter Shiff said, “this is not a surprise nor does it indicate a shift in the way other gold equity managers view crypto or Bitcoin,” noting that the CEO of US Global Investors, Frank Holmes is also the CEO of Hive Blockchain and has been active in crypto since 2017.

Ever since Bitcoin’s creation in 2009, which is currently worth more than $48k, gold has only grown from $890 to $1,815, representing a growth of only about 115%. In early August last year, the precious metal did hit a new all-time high but could only reach $2,075, while BTC went to nearly a $65k peak in April this year.

Bitcoin is still up 14.5% in August and 64% YTD compared to bullion’s -0.19% and -4.46% performance, respectively.

The institutionalization of Bitcoin and crypto has been happening at a rapid pace this year in the aftermath of pandemic and ultra-loose monetary policy, which led to a surge in inflation while the central banks keep the interest rates virtually zero or in the sub-zero territory.

As we reported recently, Bill Miller also reported owning 1.5 million shares of GBTC in its Miller Opportunity Trust, and Morgan Stanely disclosed that it owns a huge amount of GBTC shares as well.

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Author: AnTy

Asset Manager and Investment Firms Abruptly Withdraw Futures-backed Ether ETF

Asset Manager and Investment Firms Abruptly Withdraw Futures-backed Ether ETF, Another Bitcoin ETF Heads to the SEC

Investment firms ProShares and VanEck have withdrawn their Ether Futures ETF that was filed only just this week.

On Wednesday, VanEck filed for an Ethereum-based ETF that would invest in Ether futures, Canada’s approved and listed Ether ETFs, private Ether funds, and ETPs with exposure to ETH. ProShares also filed for an Ether futures-backed ETF called ProShares Ether Strategy ETF on the same day.

And now before the week was even over, both the firms abruptly withdrew their applications which according to Eric Balchunas, Senior ETF Analyst for Bloomberg could be propelled by the SEC.

“As long we ONLY see the Ether ones ejected, I’d say that’s decent news for bitcoin ETF. Sort of like them saying, look, let’s baby step this, only bitcoin rn. Stop exciting the crypto trade pubs with all these filings,” said Balchunas.

$400 billion asset manager giant Neuberger Berman which filed to have its $164 million Commodity Strategy Fund to invest up to 5% in Bitcoin and Ether through futures, filed a fresh one this week to only include Bitcoin and to “replace” the original.

Earlier this month, SEC Chair Gary Gensler made remarks that suggested he would look favorably upon futures-based ETFs.

Currently, there are still a dozen physically-backed Bitcoin ETF applications filed with the SEC along with several based on Bitcoin Futures contracts.

Amidst this, a new crypto ETF has been filed with the SEC.

Investment management firm AdvisorShares that offers a range of themed ETFs submitted an application for AdvisorShares Managed Bitcoin ETF.

This ETF will not invest directly in Bitcoin but in exchange-traded futures contracts on bitcoin and collateral, as per the filing. Morgan Creek Capital will serve as the sub-advisor of the Fund.

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Author: AnTy

$402B Asset Manager Giant Files to Start Offering Bitcoin and Ethereum Exposure Immediately

$402 Billion Asset Manager Giant Files to Start Offering Bitcoin and Ethereum Exposure Immediately

Neuberger Berman will be offering indirect exposure to the top two crypto-assets through futures and funds invested in BTC and ETH in line with SEC Chairman Gary Gensler’s openness to Bitcoin futures-backed ETFs.

Neuberger Berman, the asset manager with over $400 billion in assets under its management, filed with the US Securities and Exchange Commission (SEC) Wednesday to start offering exposure to the top two crypto-assets.

Much like the latest Bitcoin-related ETFs filed with the SEC, such as VanEck and Invesco, Neuberger Berman will also offer indirect exposure through futures instead of investing directly in Bitcoin and Ether after SEC Chairman Gary Gensler indicated that he is more open to futures backed ETFs that offer more protection. The SEC filing reads,

“Effective immediately, Neuberger Berman Commodity Strategy Fund’s (the “Fund”) investment strategy will permit actively managed exposure to cryptocurrency investments and digital ​​”assets through (i) cryptocurrency derivatives, such as bitcoin futures and ether futures, and (ii) investments in bitcoin trusts and exchange-traded funds to gain indirect exposure to bitcoin.”

The fund giant will be making the investment through its subsidiary.

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Author: AnTy

Asset Manager Files for a Bitcoin ETF But Won’t Invest Directly in BTC to Appease SEC Chair

Investment manager Invesco, which has $364 billion in assets under management (AUM), has become the latest company to file with the US Securities and Exchange Commission (SEC) for an exchange-traded fund (ETF) that will offer exposure to Bitcoin and other assets.

However, the firm says it won’t be investing directly in the cryptocurrency instead in Bitcoin futures.

According to the filing Thursday, Invesco Bitcoin Strategy ETF will invest in cash-settled bitcoin futures contracts traded on CME. At times, it also seeks to invest in exchange-traded products (“ETPs”) and ETFs listed outside the US, and open-ended private investment trusts that are linked to bitcoin such as Grayscale Bitcoin Trust (GBTC).

The “non-diversified” Fund will also invest in cash, cash-like instruments such as U.S. Government securities, money market funds, corporate debt securities, and other short-term unsecured promissory notes.

The collective “Collateral is designed to provide liquidity, serve as margin or otherwise collateralize the Subsidiary’s investments in bitcoin futures,” reads the document.

SEC Chair Gary Gensler, who has been getting increasingly vocal about regulating the crypto industry, said he is open to approving a crypto ETF this week. The agency has received several, in double digits applications.

But as we reported, Gensler has warmed to a Bitcoin futures backed ETF and not a physically-backed ETF, which is the main deal.

Eric Balchunas, the Senior ETF Analyst for Bloomberg, noted that Invesco rushed this filing in for a Bitcoin Strategy ETF under 40 Act to “satisfy Gensler” and won’t be surprised if several like these are filed by Friday night alone. Balchunas said,

“Here’s inv strategy. Basically the SEC’s hang up w 40 Act could end up funneling billions into derivatives, GBTC (which is a major reason ETF needed!), as well as up north into another country when the ppl just want an ETF that holds bitcoin directly.”

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Author: AnTy

$45 Billion Asset Manager, GoldenTree, Is Investing in Bitcoin

$45 Billion Asset Manager, GoldenTree, Is Investing in Bitcoin

GoldenTree Asset Management, a $45 billion asset manager run by founder and chief investment officer Steven Tananbaum, is the latest financial institution to get into crypto by purchasing an undisclosed amount of Bitcoin.

While it is not yet known just how much GoldenTree is actively buying Bitcoin, the fund has reportedly restricted its crypto exposure to only Bitcoin at this level.

Back in April, the asset manager had updated its SEC filing to allow the acquisition and buying and selling of a broad range of cryptos and blockchain-based companies.

Citing sources with knowledge of the matter, TheStreet reported that adding Bitcoin to its balance sheet will work as a diversifier for its broad mixture of debt-focused strategies.

Lately, they have also been having conversations about adding to its headcount with experience on the funding and operational sides of crypto investing, one of the sources said.

CIO Tananbaum and his companions at the firm Joseph Naggar Deeb Salem have already made VC-style investments in blockchain firms. In early July, they backed the funding for Borderless Capital, which focuses on the Algorand ecosystem.

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Author: AnTy

$60 Billion Fund Manager Allows Access to Bitcoin Through A Mutual Fund Investment

$60 Billion Fund Manager Allows Access to Bitcoin Through A Mutual Fund Investment

Maryland-based ProFunds, a mutual fund management company with $60 billion in assets under management (AUM) is introducing a new way to invest in Bitcoin without actually buying the crypto asset.

A premier provider of mutual funds with more than 100 funds, ProFunds is launching what it says is the first publicly available US mutual fund called the Bitcoin Strategy ProFund (BTCFX) which will correspond to the price performance of the leading cryptocurrency.

The mutual fund invests in Bitcoin futures contracts and aims of results that track the price of Bitcoin, currently above $40k, before fees. Through this product, the fund wants to eliminate the need to hold BTC and worry about its custody. ProFunds CEO Michael Sapir said,

“Cryptocurrency has become a significant asset class, and our new Bitcoin Strategy ProFund provides investors access to a bitcoin strategy through a mutual fund investment.”

“Compared to directly buying bitcoin, which may involve opening a new account with an unregulated party, this ProFund offers investors the opportunity to gain exposure to bitcoin through a form and investment method that tens of millions of investors are familiar with.”

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Author: AnTy