BlackRock often deemed the worlds largest ‘shadow bank’ has caused a surge in the cryptocurrency markets after a report in the Financial News London on Monday cited sources claiming the investment giants are looking into cryptocurrencies and blockchain, the underlying technology. This caused prices across the markets to increase including Bitcoin up by 4%
BlackRock currently manages assets worth around $6.3 trillion, making them the worlds largest ETF manager. This huge power BlackRock possesses means that any mention of the world cryptocurrency or blockchain is going to cause a flurry in the markets. The news itself comes in spite of the fact fact BlackRock CEO, Larry Fink previously saying “Bitcoin just shows you how much demand for money laundering there is in the world. That’s all it is. It’s an index of money laundering.”
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BlackRock looks into cryptocurrency
The group set up by Blackrock will consider digital currencies, the underlying technology, blockchain, wether they can benefit from either and finally if they should add bitcoin-based products like futures to their investments.
The group is being driven by Terry Simpson, a New York based multi-resource strategist at Blackrock Capital.
“We see cryptocurrencies potentially becoming more widely used in the future as the market matures,” BlackRock’s Global Weekly Commentarysaid.
BlackRock CEO Larry Fink later confirmed the report in an interview with Reuters. “We are a big student of blockchain,” Fink said. He added, however, he does not see “huge demand for cryptocurrencies.”
In an earlier interview with Bloomberg, Fink said: “I don’t believe any client has sought out crypto exposure.” It appears the Fink is still undecided on cryptocurrencies with and appears to be almost cryptic on the messages.
Index of money laundering
Larry Fink originally stated that “Bitcoin just shows you how much demand for money laundering there is in the world. That’s all it is. It’s an index of money laundering.”
Larry Fink isn’t the only individual to alter his approach to Bitcoin and cryptocurrencies. A year ago J.P Morgan CEO Jamie Dimon called bitcoin a fraud, be that as it may, Dimon still decided to investigate the digital forms of money. Indeed, even Goldman Sachs is now offering bitcoin based investment products
With BlackRock now supposedly looking into Blockchain and cryptocurrencies, excitement is growing that we may be seeing the introduction of Bitcoin ETF’s this year. It is debated that with the introduction of ETF’s we will see an influx of institutional money which could start another bull run.