The world’s largest asset manager has finally hopped onto the bandwagon. In the early days of August 2022, Coinbase and the management company known as Blackrock, which oversees around $10 trillion of investors’ money, announced that they had teamed up to bring cryptocurrency trading to its clients.
This amount of money cannot be understated, considering it is more than every single country in the world, barring the U.S. and China.
The partnership between the two behemoths is significant, and it conveys the thought processes of the market as a whole. Still, more importantly, it piques the mindset of institutional clients looking to gain more exposure to digital assets.
This is excellent news, and with it comes a further expansion towards the ultimate goal of mass adoption. Initially, Blackrock will focus solely on Bitcoin investments, but this could lead to other cryptos being added in the future.
A great deal more is possible with a door like this being pulled wide open, and many see this as a sort of green light by which other funds will eventually take note to enter the crypto space.
Not only does Blackrock personally manage $10 trillion in assets, but it also runs a massive technology platform that oversees around $22 trillion in assets across many companies.
In 1999, they began selling Aladdin, designed to track investor portfolios and can even help money managers spot certain risks.
As of today, this tool has become so widely used that it has spread to other industries outside of money management and continues to grow as we speak. When you consider Aladdin’s impact on the entire world, a link-up between Bitcoin and Aladdin can only be seen as a milestone step in the right direction.
But what about the price?
Of course, it would all be speculation. Still, according to some estimates, if Blackrock aggressively allocates just 5%, it would take the Bitcoin price up to $770,000 within the next 3 to 5 years fairly easily. 5% doesn’t seem like a whole lot but let us be a little more conservative to cover more bases.
According to InvestAnswers, if Blackrock puts only 0.5% of its assets into Bitcoin, the market cap will increase by around $1 trillion and add about $75,000 to Bitcoin’s price, taking it to about $98,000 – with an ROI of around 330%.
Blackrock’s partnership with Coinbase is one of the most significant recent cases that Bitcoin is a legitimate asset class and that it genuinely belongs right next to more traditional investments such as equities, currencies, fixed income, and commodities markets.