Despite the lack of institutional demand from its customers, BlackRock CEO Larry Fink highlighted the potential of the cryptocurrency industry.
According to him, crypto assets could become one of the largest asset classes in the world. However, he reasoned that they will not be the dominant means of payment in the globe.
Therefore, cryptocurrency investors should not treat crypto as a substitute for traditional currencies.
Fink said that since the current bull market started in late 2020, BlackRock has often been connected to several cryptocurrency initiatives.
Recent reports have revealed that the entity’s first dip in Bitcoin came when the manager bought a portion of the BTC futures contracts in March 2021 from CME. It would have made $ 360,000 profit.
BlackRock optimistic about cryptocurrencies?
Prior to this most recent speech, Larry Fink had already said that BTC has the potential to achieve the status of value reserve. However, in the end, he noted that it is too early to decide.
Now, during an interview with CNBC’s Squawk Box, the executive was significantly more optimistic about cryptocurrencies. Behind this optimism is the success of Coinbase’s IPO.
“I am still fascinated by this. I am encouraged by the number of people who are focusing on this. I am encouraged by the narrative. It can become a great asset class, ”he said.
On the other hand, Fink differentiated cryptocurrencies from fiat currencies and said that the former will not replace the latter.
That’s because, according to him, governments and central banks will eventually develop their Central Bank Digital Currencies (CBDCs).
Finally, he explained that his organization “is still watching” developments in the cryptocurrency space. But he also highlighted the lack of substantial institutional demand from BlackRock customers:
“I’m going to talk about our investors around the world: we don’t have a lot of questions about that. We are investing in that. We are studying this; we make money from it. But I am not here to say that we are seeing a broad interest from institutions around the world. ”
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