The U.S. global investment management corporation BlackRock has begun an exploration of the cryptocurrency market to find out how it can take advantage of the rapidly-growing crypto market.
BlackRock, the world’s largest and most preeminent asset management company, has announced it has set up a working group to explore ways it can incorporate cryptocurrency into its business model. The working group is to look at its competitors and how they are using cryptocurrency to help determine whether it should invest in bitcoin.
BlackRock Inc Chief Executive Larry Fink told Reuters that BlackRock does indeed have a working group and that bitcoin is part of its scope for study. However, while he said, “We are a big student of blockchain,” Fink added that he doesn’t see “huge demand for cryptocurrencies.”
Chris Yoo, a portfolio manager at Black Square Capital Management LLC, a hedge fund focused on the crypto space said,
“BlackRock exploring crypto assets comes as no surprise and is definitely a positive development for the crypto market,”
“As the largest asset manager in the world, its interest in crypto assets could be a catalyst for upward price movement and encourage other asset managers, even with more conservative strategies, to seriously explore investing in the crypto space.”
In 2017, Fink labeled bitcoin as “speculative” and that the sole reason the currency was thriving was because of its anonymity. Cryptocurrency, according to Fink is “an instrument people use for money laundering,” and none of BlackRock’s clients wanted to invest in cryptocurrency opportunities.
By December 2017, BlackRock had $6.3 trillion in assets under management, has had an abrupt change of heart about the crypto market, initiating an exploration of the sector and how it could impact its business.