BlackRock partners with Coinbase! What are they up to?

Last Updated on August 11, 2022 by aicrypto

BlackRock wants to bring institutional investors into contact with cryptocurrencies, in partnership with Coinbase.

In doing so, clients of the world’s largest asset manager can access Coinbase Prime via Aladdin. Aladdin is an investment platform for institutional clients of BlackRock.

Initially, however, access will be limited to bitcoin, which includes trading and custody of BTC for clients. The news made the rounds quickly yesterday, but did not have a significant impact on the market.

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Only the Coinbase share was able to gain, although this was rather due to an already ongoing correction and not solely to the announcement. Nevertheless, it managed to jump to 100 US dollars in the short term yesterday.

How is the crypto market reacting?

The bitcoin price was already able to close above the 200-MA line last week, but has shown itself weak so far. The economic data from the US suggest that hard times are ahead.

The next important date is the announcement of the U.S. inflation rate in July. This is already due next week and is likely to have a massive impact on expectations and thus on the market. At the same time, a worsening of the situation does not necessarily have to cause a slump in the markets.

After all, the situation could also be interpreted in such a way that the Fed is forced at a certain point to row back at least a bit in order to take the tension out of the markets, at least in phases.

This theory would be supported by the fact that elections are due in the USA in November. In this phase, a recovery of the markets could succeed, whereby Bitcoin still has a high correlation with the Nasdaq. Therefore, as before, the stock markets should advance and the crypto market should follow.

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Who is BlackRock

BlackRock is probably the best-known asset manager in the world and is known to private investors for its iShares products (ETFs), among other things. But there is much more behind the company, such as Aladdin – an incredibly advanced data analysis system, which is unique in the field of risk management and analysis.