Blockchain.com Launches Asset-management Brand for its Wealthy Clients

According to a recent Bloomberg report, leading crypto services provider Blockchain.com is set to launch a new asset-management service. Dubbed “BCAM”, the new blockchain-based financial brand targets high-net-worth clients such as family offices and institutions.

Blockchain.com Launches BCAM for Its Deep-Pocketed Clients

The specialized institutional product deploys a strategy that tracks the BTC spot price versus the US dollar. It also adopts an algorithm-based risk-managed exposure strategy that allows investors to lower the volatility associated with bitcoin investments.

BCAM was developed in collaboration with Altis Partners, an investment company that utilizes blockchain technology to deliver enhanced futures portfolio management services. Altis Partners will provide the investment management service for BCAM, while Blockchain.com will power the asset management brand.

The crypto startup is reportedly working on another crypto-themed product designed to manage exposure to decentralized finance (DeFi) coins. BCAM and the upcoming DeFi investment service will add to Blockchain.com’s growing suite of blockchain-based financial services. The firm’s offerings currently include crypto wallets, an exchange platform, and institutional-focused financial services.

Doubling Down on Institutional Business

Charlie McGarraugh, chief strategy officer at Blockchain.com, asserted that BCAM’s debut signifies his firm’s ambitions to double down on institutional products. The exec admitted that the launch of the new service was a gamble but recognized the massive opportunity to expand its institutional reach.

“Like everything in crypto you won’t know until you try. But like with everything in crypto, we think we are growing into the clear blue sky. It’s a big opportunity,” McGarraugh explained.

In recent times, Blockchain.com has made significant strategic moves to onboard more investors with its new institutional product offerings. In March of 2022, the Luxembourg-based crypto startup grabbed headlines after acquiring digital assets investment firm Altonomy. The move introduced thousands of institutional clients to OTC crypto trading.

At the end of last month, Blockchain.com became one of the most valuable crypto startups after completing a new financing round. Several venture capitalist firms, including Lightspeed Ventures and Baillie Gifford & Co, raised capital valued at an estimated $14 billion.

Blockchain.com is now one of the leading crypto exchanges and financial services companies, with 37 million users, 82+ million wallets, and upwards of $1 trillion in total crypto transactions.

Institutional Adoption of Crypto Points to Maturing Industry

A report published by digital asset manager CoinShares this past January revealed that 2021 was a breakout year for institutional adoption of digital assets. The study shows that crypto-themed funds hit record net inflows of $9.3B over the 12-month period. Moreover, digital asset funds’ total assets under management closed the year at $62.5B, up from $2.8B logged two years ago.

A more recent CoinShares analysis shows that institutional money continues to flow into crypto markets at an accelerated rate. The data highlights that digital asset management firms located in the Americas, especially in Brazil and Canada, are showing the highest interest in the digital assets space.

Crypto investment products funds have more than doubled since 2020, pointing to the growing popularity and demand for digital assets among institutional players. This increased uptake of the asset class among wealthy individuals and institutions is indicative of a maturing industry.