BlackRock CEO: We’re Watching Bitcoin, It Could Be Another Store Of Wealth But Not Proven Yet
The Bitcoin market needs to have a broadening so that large sums of money can be invested without moving the value for it to be successful, said Larry Fink, the founder of the world’s largest asset manager with $8.67 trillion AUM.
The price of Bitcoin might still be stuck up around $30,000, but institutions are still watching it and getting involved.
As we reported, the world’s largest asset manager who has $8.67 trillion in assets under management as of January 2021, recently filed with the SEC to add Bitcoin futures as an eligible investment to two of its funds.
Now, BlackRock CEO Larry Fink again talked about all the excitement around the leading cryptocurrency. “We're watching it, we're enjoying the conversation,” said the founder and Chairman of the asset manager giant.
While talking about working together on climate change, which he sees as an “investment risk” and sharing optimism around capital coming into China, Fink also addressed the Bitcoin market in an interview with Bloomberg, where he says, Bitcoin “is still very small.’
“It can move in a very large increment with small movements of money. So, it is not the market for the calm,” he said but added that he “understands the enthusiasm around it.”
Fink reiterated his views that this asset category is very small relative to other asset categories. The untested, highly volatile market is getting a lot of attention from the business media, which believes it’s gonna have a huge future, he said.
“People are fascinated about it,” Fink said. “It could be another store of wealth. But right now, it’s still untested. It has huge volatility.”
Fink is playing it neutral now as he says that the leading digital currency “has not proven yet on the long term viability of it.”
“For it to be truly successful, it is gonna have to have a broadening of a market, and you can invest large sums of money without moving the value,” he said. “So we are watching it, we’re enjoying the conversation” and fascinated by how many people have enjoyed the conversation.
The CEO also said that some form of a digitized currency would be playing a bigger role in the future, but it’s to be seen if it would be Bitcoin or some other currency.