NY-based BlackRock is the world’s largest asset management company, with some $6 trillion in assets under management. The firm, with a truly international operation spread across thirty countries, is also the world’s largest provider of exchange-traded funds (ETFs). Institutional investment doesn’t come any bigger than this. For this reason the tentative news emerging today of BlackRock testing the crypto waters could be huge news for the markets.
Reports suggest that BlackRock have established a high-level working group to explore the possibilities of investing in crypto, blockchain and the infrastructure required to support the emerging sector. A spokesman said that the firm have been investigating the potential for involvement and investment since 2015, but now it seems preparation is beginning in earnest.
BlackRock Chief Exec Larry Fink has previously gone on record as saying crypto is “an index of money laundering” and has suggested that significant development is required in the sector before mainstream investors could be expected to enter the space. Fink appeared to give mixed messages in a follow-up interview today, saying that whilst BlackRock clients have little interest in crypto at present, the firm as a whole is “very excited” about the growth of blockchain technology. Industry veterans might recall a similar dissonance on the part of JP Morgan’s Jamie Dimon who called crypto a “fraud” shortly before the firm began to explore possible investments in digital currencies.
At the time of writing there are indications that recent bullish news may finally be beginning to impact on prices, as Bitcoin bounced 4% to $6600 and combined market cap rose to just shy of $270 billion. Prices will need to break through some tough resistance, however, before any trend reversal can be confirmed.
