BlackRock, asset manager with the largest holding,plans to focus on crypto
BlackRock, a prominent asset manager with the largest holding of nearly $5.4 trillion has expressed its desire to enter crypto space. No other asset manager is as gigantic as BlackRock in terms of its holding. According to a report by BCFocus, in this crypto market where on one hand, BlackRock is generating interest in it, on the other hand, UK is evolving as a its leader.
BlackRock has recently developed an inclination towards the crypto market and hence, planning to make further consideration in this particular direction, as per Financial News. In Global Weekly Commentary, BlackRock on 26th February, 2018 made a conclusive statement regarding “crypto craze”. It stated,"We see cryptocurrencies potentially becoming more widely used in the future as the markets mature. Yet for now we believe they should only be considered by those who can stomach potentially complete losses.”
According to the report by Financial News based in London, BlackRock happened to create, “a team from different parts of the business to investigate cryptocurrencies and their underlying infrastructure, blockchain." The working group would be accountable for analysing, “whether BlackRock should invest in bitcoin futures." It would equally keep a track "at what BlackRock’s competitors are doing with cryptocurrencies and how that could impact its business."
BlackRock CEO remark
The event would definitely bring about a dramatic transformation following a remark made by the CEO of BlackRock, Larry Fink on Bitcoin [BTC]. Last year, in October at the congregation of Institute of International Finance, he described Bitcoin [BTC] as an "index of money laundering." He commented, "Bitcoin just shows you how much demand for money laundering there is in the world... That's all it is."
On that particular day when Fink made the statement, he was accompanied by the JPMorgan Chase’s CEO and Chairman, Jamie Dimon. Jamie went onto term the people “stupid” who purchase Bitcoin [BTC]. He commented, "If you're stupid enough to buy it, you'll pay the price for it one day... The only value of bitcoin is what the other guy'll pay for it... Honestly I think there's a good chance of the buyers out there are out there jazzing it up every day so that maybe you'll buy it too, and take them out."
A report released on 3rd January, 2018 by The Financial Times stated, “BlackRock’s iShares ETF arm set a fresh record for growth with net new business inflows of $246bn in 2017, an increase of 76 per cent on the $140bn gathered over the previous year" and BlackRock is expecting ETF assets globally to "double by 2022 from the current level of $4.5tn."
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