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BlackRock Inc. (BLK), the world’s largest asset manager, has tapped Anchorage Digital as a digital asset custodian for the iShares Bitcoin Trust (IBIT) and the iShares Ethereum Trust (ETHA) to meet growing crypto demand from retail and institutional clients.
Coinbase Global Inc. (COIN) was previously the only crypto custodian for BlackRock’s Bitcoin and Ether exchange-traded funds.
Anchorage Digital Bank will be an additional custodian eligible to support BlackRock’s crypto exchange-traded products and other funds providing exposure to crypto, according to a press release issued by Anchorage on Tuesday.
BlackRock and Anchorage Partner Up
“As demand for digital asset products increases, and as our footprint in the ecosystem grows, we continue to expand our network of service providers with a focus on the highest quality institutional providers,” Robert Mitchnick, head of digital assets at BlackRock, said in a statement included in the release. “After a thorough evaluation, Anchorage Digital clearly meets these standards, and we are excited to be expanding our network of eligible digital asset service providers with the addition of Anchorage Digital.”
However, BlackRock doesn’t have current plans to move any Bitcoin or Ether from the trusts to Anchorage Digital, per two filings (see here and here) with the Securities and Exchange Commission. The addition of the second custodian reflects BlackRock’s “ongoing risk management approach” as part of the trusts’ growing size and the fund manager's "expanding presence in the digital asset space.”
“As BlackRock continues to bridge digital assets and traditional finance, we are excited by the opportunity to set a new standard for tailored access to the digital asset class,” Nathan McCauley, CEO and co-founder of Anchorage Digital, said via the press release. “By providing federally regulated crypto infrastructure, we are helping BlackRock to meet client demand for today and tomorrow. We are proud to build toward a world where every investor can get exposure to digital assets.”
Anchorage’s other major asset management clients include alternative asset manager Apollo and crypto ETP issuer 21Shares.
IBIT & ETHA: BlackRock’s Crypto Footprint
IBIT launched in January 2024 and hit the $10 billion in assets milestone just seven weeks later, faster than any ETF before it. Surpassing the Grayscale Bitcoin Trust ETF (GBTC) as the world’s largest bitcoin fund, the ETF of the Year finalist has accumulated roughly $45.1 billion in assets under management. ETHA, meanwhile, has around $1.8 billion in assets.