The CEO of Blackrock, the world’s largest asset manager, says he is fascinated by cryptocurrency, believing it could become a ‘great asset class’. However, he said Blackrock has not received many inquiries from its institutional clients about having bitcoin in their wallets.
Blackrock’s CEO ‘Fascinated’ About Crypto
Following the initial public offering of Coinbase via a direct listing on Nasdaq, Blackrock CEO Larry Fink was asked in an interview with CNBC on Wednesday if his view of cryptocurrency has changed. Blackrock is the world’s largest asset manager, with more than $ 8.7 trillion in assets under management.
“I’m still fascinated by it,” he began. “I find it encouraging how many people are focusing on it. I am encouraged about the story. It can become a great asset class. He stressed, “I really believe this could become a great asset class, cryptocurrency.” However, the executive noted, “I don’t believe it’s a substitute for currencies. cryptocurrencies from other currencies. “
The CEO of Blackrock commented:
I don’t believe we should see crypto as a substitute for currencies. I am fascinated by it as an asset class.
He clarified: “I’m still watching … We are investing in it … We are studying it. We have made money with it. Nevertheless, he revealed, “Our investors worldwide, we don’t have that much research on it.”
Fink was specifically asked if Blackrock’s institutional clients ask him about bitcoin and cryptocurrencies in regards to any exposure in their wallets, as that’s the story the market has turned to, including in Coinbase’s valuation.
“We’re not having those conversations,” he confirmed, but was quick to add that “they might be talking to someone else.” He clarified, “I’m not implying that we have perfect information, but our broad-based customer relationships, we’ve had very little interconnectivity in the crypto conversation, other than a fascination.”
He went on to say, “The amount of conversations we have about climate risks and how they can navigate their portfolios is an important part of the conversation. The conversation about shortages and the conversation we have about inflation risk is much more dominant for our customers worldwide than the whole conversation about crypto. “
The Blackrock director commented, “We have not had any discussions about Reddit and Gamestop and what does that mean with our customers, and yet it represents an important part of the markets. It’s fascinating to watch. “
In conclusion, Fink said:
So I believe there is a part of the financial markets about crypto that is real, that is growing. But if you’re specifically asking about long-term investments, from sovereign wealth funds, pension funds, retirement services, large family offices, the conversation about crypto is a very small conversation compared to other conversations.
In November last year, Rick Rieder, Global Fixed Income’s Chief Investment Officer, said that “cryptocurrency is here to stay” and that bitcoin could replace gold. In December, Fink said bitcoin is making the US dollar less relevant, noting that cryptocurrency could evolve into a global market. Blackrock then revealed in February that it had started investing in bitcoin.
What do you think about what Fink said about cryptocurrency? Let us know in the comments below.
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