Cryptocurrency “could become a great asset class”, BlackRock CEO says
Following increased institutional adoption of cryptocurrencies, it seems that BlackRock, the world’s largest asset manager, is about to make its first steps on the rapidly expanding crypto space.
BlackRock, with over $8.7 trillion in assets under management dabbled into Bitcoin this January after a double filing with the U.S. Securities and Exchange Commission.
In an interview last week on CNBC’s Squawk Box, BlackRock Chief Executive Officer Larry Fink stated that cryptocurrency “could become a great asset class.”
“It may become a great asset class and I do believe this can become a great asset class,” says Larry Fink. “I don’t believe we should think about #crypto as a substitute of currency.”#btc pic.twitter.com/ykGNhZqVT7
— Squawk Box (@SquawkCNBC) April 15, 2021
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“I’m still fascinated about it, I’m encouraged by how many people are focusing on it, I’m encouraged about the narrative that it may become a great asset class. And I do believe this could become a great asset class,” Fink said
Optimistic yet cautious
The CEO remained skeptical though of whether cryptocurrencies could replace fiat:
“I don’t believe it’s a substitute for currencies. I think we’re going to have cryptocurrencies of dollars, cryptocurrencies of other currencies. But I don’t believe we should think about crypto as a substitute of currency. But I’m fascinated by it as an asset class.”
In stark contrast to clients at other major U.S. investments banks such as Morgan Stanley and Goldman Sachs, Finks said that there has been very little demand or interest from BlackRock’s institutional clients:
“There are components in the financial markets about crypto that are real, that [are] growing. But if you’re asking me specifically about long-term investing from sovereign wealth funds, from pension funds, from retirement services, from big family offices, the conversation about crypto is a very minor conversation compared to so many other conversations.“
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Source: igaming
