In this blog post, we will discuss three significant updates that highlight the challenges and opportunities in the blockchain industry. We will explore BlackRock’s decision to close its China Flexible Equity fund, Coinbase’s launch of a crypto lending service for institutional clients, and Genesis’ voluntary closure of its cryptocurrency spot trading service.

1. BlackRock’s China Flexible Equity Fund Closure:
BlackRock, one of the world’s largest asset management firms, recently announced the closure of its China Flexible Equity fund due to low investor interest and a pessimistic outlook. With only $22.3 million in assets since its 2017 launch, the fund struggled to gain traction. The move comes amidst mounting concerns over US investments in Chinese companies, leading to increased oversight and scrutiny from Congress. While the fund’s closure helps mitigate risk and costs, BlackRock’s broader investments in China still remain under scrutiny.

2. Coinbase’s Crypto Lending Service for Institutional Clients:
Coinbase, a leading cryptocurrency exchange, has stepped in to fill the void left by the failures of firms like Genesis and BlockFi with its new crypto lending service for institutional clients in the United States. This service enables clients to lend money, primarily in the form of crypto assets, to Coinbase and receive collateral that exceeds the loan value. Coinbase can then offer secured loans to institutional trading clients, resembling prime brokerage services offered by traditional banks. Targeting institutional investors, this service faces fewer regulatory restrictions than the canceled Lend program, which was aimed at retail customers. Notably, the lending program has already raised an impressive $57 million.

3. Genesis’ Voluntary Closure of Crypto Spot Trading Service:
Genesis Global Trading (GGT), an entity affiliated with the Digital Currency Group (DCG), has taken the voluntary decision to close its cryptocurrency spot trading service on September 18. This move follows the bankruptcy declaration earlier this year by Genesis Global Capital, the parent company’s crypto lender. GGT, registered with the New York State Department of Financial Services, has faced legal conflicts with the Gemini cryptocurrency exchange over unregistered securities offerings. However, GGC International, also affiliated with DCG, will continue to offer spot and derivatives trading services. DCG, the parent company, is also the owner of Grayscale Investments, which recently received approval to create a Bitcoin spot exchange-traded fund.