The global investment powerhouse has all the ammunition to turn tables for cryptocurrencies and take their prices skyward
Reports have surfaced that Blackrock, the American global investment management corporation which has over $6.3 trillion in assets under management, has set up a functioning group to examine cryptocurrency. It is said that the group has been constituted from various sections of the business to look into cryptocurrencies and their fundamental infrastructure, blockchain.
Blackrock has the power to turn fortunes
The New York-based financial giant holds all the main nerves of the world global investing: It’s the world’s biggest asset manager, overseeing about $6 trillion in client money. That’s an amount bigger than the GDP of every country on earth except the U.S. and China, which clarifies BlackRock’s investment decisions create ripples that roll through every major global market.
BlackRock’s well-designed products don’t involve much decision-making of the investors. These are almost no-brainers to make money in. It’s the biggest provider of passive exchange-traded funds, with $1.5 trillion invested in its iShares fund family- which is under Blackrock’s Management. Not just that, BlackRock’s institutional stock and bond holdings, most of which are actively managed, are considerably larger than its ETF portfolio.
Not just products, but every investment choice the company’s 135 investment team make about where to deploy that money affect and influence countless other investors.
Blackrock has been vocal on Blockchain and cryptos since last year
In February 2018, BlackRock’s global chief investment strategist Richard Turnill had said that investors should only consider cryptocurrencies such as bitcoin if they are prepared to lose everything but BlackRock sees a lot of potential in its underlying distributed ledger technology- the blockchain. To quote him,
“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,”
Last year in October 2017, Speaking with Business Insider, Richard Turnill said that cryptocurrencies have experienced “spectacular price increases” in recent months, leading him to conclude:
“I would say that cryptocurrencies show many characteristics of a bubble right now.”
The same sentiment was echoed by BlackRock CEO Larry Fink who stated that Bitcoin is an index for money laundering to quote him,
“Bitcoin just shows you how much demand for money laundering there is in the world,”
While the Top officials at Blackrock have been skeptical on cryptocurrencies in their remark’s, it should be noted that it was never of their radar as someone or the other spoke of it in the media. And now with changing times- new products creation, regulations being worked up, and other institutions showing their interest, BlackRock may be looking at cryptocurrencies.
Blackrock news gets the crypto community excited
The report that Blackrock has been exploring cryptocurrencies has got the crypto community excited. A lot of people using their twitter handle recommended that it’s a right time to buy bitcoins.
Blackrock, one of the largest asset managers in the world, has created a team to explore how they can enter the crypto markets.
Easy answer: Buy Bitcoin
— Pomp 🌪 (@APompliano) July 16, 2018
A few even shared an opinion that if BlackRock, the largest ETF company, gets involved, the SEC will have no reason to oppose the upcoming bitcoin ETF decision, which was filed by CBOE.
The difference btw a future & an ETF is that an ETF has to buy the underlying taking liquidity out the market.
When the World’s biggest ETF company is looking at Crypto and the SEC has no real reason to block the next ETF, it could get a little excitinghttps://t.co/eFAYwnGdyN
— Ran NeuNer (@cryptomanran) July 16, 2018
Whether BlackRock investors or doesn’t, its exploration news also is a major news for the crypto community as the new age technology has been able to grab the interest of this mammoth investment giant. The future definitely looks super bright.
Will Blackrock change its stance on cryptocurrencies? Do let us know your views on the same.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO’s in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114 and reach out to him at sunil (at) coingape.com