World’s Largest Asset Manager BlackRock Exploring Bitcoin
BlackRock – the world’s largest asset manager with $6.3 trillion in assets under management – has reportedly started a working group to research ways the company can leverage cryptocurrencies and blockchain technology. This group has also been made responsible for monitoring rivals and what strategies they are using to move forward in this developing space.
A main goal of the group is rumored to be evaluating the feasibility of a bitcoin ETF. This group has additionally been confirmed by BlackRock’s CEO Larry Fink in an interview with Reuters. Fink went on to label BlackRock “a big student of blockchain,” but clarified that there was not a “huge demand for cryptocurrencies.”
The narrative from BlackRock overall seems to be optimistic but is still developing. There are no clear signs that the company is seeking to invest in the space either.
BlackRock’s global chief investment strategist, Richard Turnill, has also added to this mixed narrative on the space in a company commentary in late February. Turnill said that he sees “cryptocurrencies potentially becoming more widely used in the future as the market matures. Yet for now we believe they should only be considered by those who can stomach potentially complete losses. Similarly, blockchain needs to overcome significant hurdles to reach its promising future.”
Regardless, BlackRock making any move into cryptocurrencies or blockchain technology is a huge sign of progression in the space. A move to invest in the space would be an even larger catalyst for the young asset class; however, that seems to be out of reach for the moment.