According to the BlackRock report, the world’s leading asset manager owns 384 million dollars in shares in crypto-mining and bitcoin companies.
SEC filings, BlackRock owns $384 million in bitcoin mining companies under management. The filing, which was made public at the end of June, indicates investments in mining companies as the market appears to be warming. With $9 trillion in assets under management, the company is the world’s largest asset manager. In recent years, BlackRock has pondered the crypto-currency space and sparked numerous conversations about increasing adoption
Unlike many institutional investors, the company does not directly invest in cryptocurrencies, preferring to invest in companies related to the industry.
Fees for crypto ETPs can be up to six times higher than those charged by third-party custodians. Institutional investors interested in cryptocurrency should consider the remaining cost of its comfort zone.
Finoa, a German cryptocurrency custodian, crunched the numbers and discovered that the fees for crypto-traded products (ETPs) are 4-6 times higher than custodial service fees. Finoa discovered that single asset ETPs charged a (medium) 1.8 percent average fee, while multiple asset ETPs charged a (medium) 2.3 percent average fee.
According to Finoa, the cost of one-asset ETP cryptography is 4.6 times that of a custodian, and the ETP is six times that of a multi-asset.
13 Grayscale Multi-asset ETPs
A study of 14 institutional custody providers, including Anchorage, Bitcoin Coinbase, and Gemini, discovered an average 0.38 percent charge for a $23.5 million portfolio.
“We examined and compared all available ETP prices with the prices of the world’s top custodians.” And the price difference is significant,” said Marius Smith, Finoa’s Head of Business Development, who added: “It’s not a monetary cultural preference.” Many of them are accustomed to working with the same systems, asset managers, and service providers. There were 53 ETPs for a single asset. Grayscale, 21Shares, WisdomTree, VanEck, ETC Group, Iconic Holding, Evolve ETF, CI Global Asset Management, CI Bitwise, 3iQ, First Block Capital, Valour, and Leonteq were among those involved.
There are a total of 13 Grayscale multi-asset ETPs in the programme, including 21Shares, FiCAS, Iconic Holding, Bitwise, and 3iQ. (The Digital Currency Group was Grayscale and CoinDesk’s parent company.) Smith stated that Finoa has no disclosure agreements with three or four major financial institutions, as the prospect of putting the assets into decentralised financing shifts towards direct cryptography exposure.