BlackRock, Manager of $8.6T in Assets, is Now ‘Studying’ Crypto

In BlackRock’s annual meeting on Wednesday, CEO Larry Fink, in response to a shareholder’s question on whether the company would invest in Bitcoin, stated: “The firm has monitored the evolution of crypto assets. We are studying what it means, the infrastructure, the regulatory landscape.”

A Progressive Change of Mind

It is no secret that even the brightest minds, at some point, slip up. The most brilliant people can be wrong at times, even in their own field of expertise. 

Larry Fink is the CEO of the world’s largest asset management firm. Clearly then, he is someone who is supposed to apprehend investing and money far better than anyone else. Yet it took him a great deal of time to acknowledge the best-performing asset in history—Bitcoin. Though, it is valuable to see how this renowned financial expert started to see Bitcoin in a different light.

Fink, the man with over $8.6 trillion in assets under management, initially held an extreme anti-Bitcoin stance. Back in 2017, in an interview with CNBC, he called Bitcoin an “index of money laundering,” here are his exact words:

“Let me just say one thing on Bitcoin. Bitcoin just shows you how much demand for money laundering is there in the world. That’s all it is. It is an index of money laundering.”

Three years later, in December 2020, concomitantly as Bitcoin was breaching its previous all-time high, Fink started seeing things through a different lens. According to a report, Larry Fink told CNBC that Bitcoin has “caught the attention” of many people. He further added that the nascent cryptocurrency asset class can possibly “evolve” into a global market asset. 

It will remain undiscovered what impression caused Fink to change his view concerning Bitcoin. Of course, observing Bitcoin flourish following its brutal crash in 2018 may have had a particularly powerful impact on him. Though he could have educated himself about Bitcoin and consequently commenced reconsidering it. 

BlackRock Got Caught Trading Bitcoin Futures

Without revealing to the public, the world’s largest asset management firm had dabbled in the Bitcoin market. According to filings lodged with the U.S. SEC published in April this year, BlackRock has been trading Bitcoin futures since January.

Sources with the knowledge of the matter reportedly told CoinDesk that the asset manager had held $6.5 million in CME bitcoin futures contracts earlier this year. Those contracts had appreciated $360,457 on reporting day, CoinDesk claims. 

BlackRock’s holding only represented 0.03% of the company’s total assets under management on reporting day, and gains represented merely 0.0014%—a very small portion. Though, it can be assumed that this was an experimental trade, aiming to find out if such trades can be profitable.

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BlackRock is “Studying” Crypto-Assets

Today, in the firm’s annual meeting, CEO Larry Fink revealed that BlackRock has been monitoring the evolution of crypto-assets. This comes as no surprise since the company has been gradually improving its stance on the crypto subject.

Fink asserted that cryptocurrencies could potentially be efficient in long-term investing as an asset class like gold. He further declared it is soon to conclude whether cryptocurrencies are “just a speculative trading tool,” hinting they can have vast potential.

What are your thoughts regarding the bullish news from the world’s largest asset manager? Do you think BlackRock will soon invest in Bitcoin? Let us know in the comments below.