$9.5 Trillion Asset Manager BlackRock is Studying Crypto, CEO says “We Believe That Will Play A Very Large Role”
Larry Fink, the CEO of the world’s largest asset manager, BlackRock doesn’t understand much about Bitcoin but said he sees huge opportunities in digitized currencies.
“I see huge opportunities in a digitized crypto-blockchain-related currency and that's where I think it's going and that's going to create some big winners and some big losers,” he said during his conversation with CNBC.
But when it comes to the trillion-dollar asset BTC, Fink said he is “not a student of bitcoin” and does not know where it's going to go.
“I can't tell you whether it's going to $80,000 or zero.”
“But I do believe there is a huge role for a digitized currency and I believe that's going to help consumers worldwide.”
Interestingly, Bitcoin jumped 5% to nearly $57,300 on Wednesday, continuing the green month in which the cryptocurrency is up more than 30%.
When further asked about JPMorgan CEO Jamie Dimon calling the leading cryptocurrency “worthless,” Fink said he’s “probably more on the Jamie Dimon camp.”
In an interview this week, Dimon said, “(Bitcoin) makes no difference to me” but added, “Our clients are adults. They disagree. That’s what makes markets.”
But that doesn’t mean, the asset manager isn’t interested in the crypto market as on being asked when he has shifted in his view in offering access to crypto to BlackRock investors, Fink said,
“We're studying blockchain and the whole concept of crypto and we believe that will play a very large role.”
Back in February, BlackRock's chief investment officer of global fixed income Rick Reider said the firm had “started to dabble” in crypto assets. Then in a filing with the Securities and Exchange Commission (SEC) dated July 31 showed that the BlackRock Global Allocation Fund had been trading Bitcoin futures. The asset manager giant has also invested millions in Bitcoin mining companies.
On Wednesday, the New York firm reported a 16% increase in revenue to $5.05 billion while its assets under management jumped 21% to $9.46 trillion, as of Sept. 30 from $7.81 trillion a year earlier.
Earlier this week, at the Institute of International Finance, Fink had commented on inflation, saying he doesn’t believe that it is transitory.
“I’m not calling for stagflation — I don’t see any evidence of that — but do I see persistence in inflation? Yes.”
“I think it’s more than transitory related to supply-chain issues and commodity prices.”
While President Rob Kapito said at the time some clients are increasing allocations to various alternatives from 1% to up to 20%, the CEO said some are allocating more to equities.
“I don’t think there’s one global trend of going in and out of one product because [there are] inflationary fears and some clients don’t believe in that.”