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BlackRock Eyeing Blockchain and Crypto In Spite of CEO’s Stance BlackRock Eyeing Blockchain and Crypto In Spite of CEO’s Stance

BlackRock Eyeing Blockchain and Crypto In Spite of CEO’s Stance

The largest investment management firm in the world โ€” BlackRock โ€” has set up a working group to evaluate the investment potential of blockchain and cryptocurrency.

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The largest investment management firm in the world โ€” BlackRock โ€” has set up a working group to evaluate the investment potential of blockchain and cryptocurrency.

As of December 2017, the New York-based financial giant has $6.28 trillion of assets spread across equity, fixed income, cash management, alternative investment, real estate and advisory strategies.

Where BlackRock may be eyeing expansion into the emerging asset class, CEO Larry Fink told Reuters he fails to see โ€œhuge demand for cryptocurrenciesโ€. Their underlying technology, however, may be of more value to the corporation โ€” the financial executive adding โ€œwe are a big student of blockchain.โ€

Where Fink may dispute the place of cryptocurrency in his companyโ€™s portfolio, his cohort may leave him little say in the matter.

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In a steadily institutionalizing landscape, a number of BlackRockโ€™s direct competitors have disclosed large investments into cryptocurrency โ€” perhaps the most recent example being โ€œHedge Fund Kingโ€ multi-billionaire Steven Cohen, as reported July 15, 2018, by CryptoSlate.

Paraphrasing Finkโ€™s comments, Anthony Pompliano pointed out that Fink may be making a multi-trillion dollar error of judgment:

Finkโ€™s stance is not unique and appears to be echoed amongst the older generation of investment gurus. In a vein similar to JP Morganโ€™s CEO Jamie Dimon, or business magnate Warren Buffet, Fink once described Bitcoin as a โ€œvery speculative instrumentโ€ used โ€œfor money launderingโ€.

According to the Los Angeles native, size matters. Stating that the only sound investment for a 30-year old is โ€œ100 percent equitiesโ€ โ€” a $30 trillion market in the USA alone โ€” Fink suggests Bitcoin โ€œis tiny in the scheme of financial markets.โ€

Given the cryptocurrency marketโ€™s projected rate of growth, such comments may lose relevance โ€” fast. In a January 2018 survey by Thomson Reuters, roughly 80 of 400 financial institutions reported considering cryptocurrency trading in the coming financial year.

In closing, Neill Penney โ€” Thomson Reuters Co-Head of Trading โ€” stated:

“Cryptocurrency is still a relatively small part of the trading market, but this survey indicates this niche segment is starting to enter the mainstream of the financial services industry. ย This is a major change from a year ago.”

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