“I Don’t Believe Any Client Has Sought Out Crypto Exposure,” Says BlackRock CEO Larry Finkbr>
BlackRock CEO Larry Fink said that he does not see “huge demand for cryptocurrencies.”
Earlier this week, it was reported that BlackRock, the world’s largest exchange-traded fund (ETF) provider, has set up a working group to look into cryptocurrencies and blockchain. Fink confirmed the report, but said that he don’t believe any client has sought out crypto exposure.
“We are studying it and we are looking at how they perform and we are looking at that type of data as we understand it as we think about other products,” Fink said. “But right now, worldwide I have not heard from one client that needs to be in it right now.”
In October 2017, Fink said that he was a “big believer” in bitcoin, though he also also cautioned that it is “an index for money laundering.” During the same month, the largest asset management firm announced that it was testing a blockchain platform for its custody bank partners. In February, BlackRock said that despite some obstacles, blockchain has promise and it envisions a wider role for cryptocurrencies in the future.
Chris Yoo, a portfolio manager at Black Square Capital Management, a hedge fund focused on the crypto space, said that BlackRock exploring crypto assets comes as no surprise and is definitely a positive development for the crypto market.
“As the largest asset manager in the world, its interest in crypto assets could be a catalyst for upward price movement and encourage other asset managers, even with more conservative strategies, to seriously explore investing in the crypto space,” Yoo said.