The CEO of Blackrock, the world’s largest asset manager, says he is fascinated by the cryptocurrency, believing it could become a “great asset class.” However, he said Blackrock had not received many inquiries from its institutional customers about the presence of bitcoin in its portfolio.
Blackrock CEO “Fascinated” for Crypto
Following Coinbase’s IPO through a direct listing on the Nasdaq, Blackrock CEO Larry Fink was asked in an interview with CNBC on Wednesday if his view of the cryptocurrency had changed. Blackrock is the largest asset manager in the world, with assets of over $ 8.7 trillion.
“I’m still fascinated by this,” he began. “I am encouraged by how many people focus on it. I am encouraged by the story. It can become a great asset class. He stressed, “I believe this can become a great asset class, a cryptocurrency.” However, the CEO noted: “I don’t believe it’s a substitute for currencies. currency. “
The CEO of Blackrock has developed:
I do not believe that we should think of crypto as a substitute for currencies. I am fascinated by it as an asset class.
He explained: “I’m still watching … We’re investing in this … We’re learning it. We made money from it. “Nevertheless, he revealed, ‘Our investors around the world, we don’t have that many inquiries about this.’
Fink was specifically asked if Blackrock’s institutional customers ask him about bitcoins and cryptocurrencies about some exposure in their portfolios, because that’s the story the market focuses on, including the Coinbase valuation.
“We’re not having these conversations,” he confirmed, but quickly added that “maybe they’re talking to someone else.” He explained: “I don’t want to assume that we have perfect information, but our broad customer relationships have had very little interconnectedness in the crypto conversation other than charm.”
He went on to say: “The size of the conversations we have about climate risk and how they can navigate their portfolio is a key component of the conversation. The conversation about deficits and the conversation we have about the risk of inflation is much more dominant for our customers around the world than the whole conversation about crypto. “
The CEO of Blackrock noted: “We have not talked about Reddit and Gamestop and what that means with our customers and yet it is a key component of the markets. It is fascinating to watch. “
In conclusion, Fink said:
So, I believe there is a component of the financial markets for crypto that is real that is growing. But if you ask specifically about long-term investment, from government welfare funds, from pension funds, from pension services, from large family offices, the crypto conversation is a very insignificant conversation compared to other conversations.
In November last year, Blackrock’s chief investment officer for global fixed income, Rick Reeder, said that “cryptocurrency is here to stay” and that bitcoin could replace gold. In December, Fink said bitcoin was making the US dollar less relevant, noting that the cryptocurrency could become a global market. Then Blackrock revealed in February that it had started investing in bitcoin.
What do you think of what Fink said about cryptocurrency? Let us know in the comments section below.
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