The CEO of Blackrock, the worldâ€™s largest asset manager, says that he is fascinated by cryptocurrency, believing that it could become a â€œgreat asset class.â€ However, he said that Blackrock has not received many inquiries from its institutional clients about having bitcoin in their portfolios.
Blackrockâ€™s CEO â€˜Fascinatedâ€™ About Crypto
Following Coinbaseâ€™s IPO via a direct listing on Nasdaq, Blackrock CEO Larry Fink was asked in an interview with CNBC Wednesday whether his view on cryptocurrency has changed. Blackrock is the worldâ€™s largest asset manager, with more than $8.7 trillion in assets under management.
â€œIâ€™m still fascinated about it,â€ he began. â€œIâ€™m encouraged by how many people are focusing on it. Iâ€™m encouraged about the narrative. It may become a great asset class.â€ He emphasized, â€œI do believe this could become a great asset class, cryptocurrency.â€ However, the executive noted: â€œI donâ€™t believe itâ€™s a substitute for currencies. I think we are going to have cryptocurrencies of dollars, cryptocurrencies of other currencies.â€
The Blackrock CEO elaborated:
He clarified: â€œI am still watching â€¦ We are investing in it â€¦ We are studying it. We made money on it.â€ Nonetheless, he revealed: â€œOur investors worldwide, we donâ€™t have that much inquiry on it.â€
Fink was specifically asked whether Blackrockâ€™s institutional clients are asking him about bitcoin and cryptocurrencies regarding having some exposure in their portfolios, because that is the narrative that the market has been focusing on, including in the valuation of Coinbase.
â€œWe are not having those conversations,â€ he affirmed, but quickly added that â€œmaybe they are talking to somebody else.â€ He clarified: â€œI donâ€™t want to suggest that we have perfect information but our broad base client relationships, we have had very little interconnectivity on the conversation on crypto other than a fascination.â€
He further opined: â€œThe amount of conversation we are having on climate risk and how they can navigate their portfolios is a major component of the conversation. The conversation about deficits and the conversation we are having on inflation risk is far more dominant for our clients worldwide than the whole conversation about crypto.â€
The Blackrock executive noted: â€œWe didnâ€™t have any conversations around Reddit and Gamestop and what does that mean with our clients either, and yet it represents a major component of the markets. Itâ€™s fascinating to watch.â€
In conclusion, Fink said:
In November last year, Blackrock Chief Investment Officer of Global Fixed Income Rick Rieder said that â€œcryptocurrency is here to stayâ€ and bitcoin could replace gold. In December, Fink said that bitcoin makes the U.S. dollar less relevant, noting that cryptocurrency can evolve into a global market. Blackrock then revealed in February that it had started investing in bitcoin.
What do you think about what Fink said about cryptocurrency? Let us know in the comments section below.
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