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BlackRock CEO: Cryptocurrency Could Become a “Great Asset Class”

The CEO of BlackRock, Larry Fink, has declared that he is fascinated by crypto and believes that it may become a “great asset class.” Still, he also mentioned that BlackRock has yet to receive a huge number of demands from institutional clients in regards to owning Bitcoin in their portfolios. BlackRock is the largest asset manager in the world.

After Coinbase’s IPO through a direct listing on Nasdaq, Fink was asked what he thinks about crypto and if his views on it have changed. He responded by saying:

“I’m still fascinated about it. I’m encouraged by how many people are focusing on it. I’m encouraged about the narrative. It may become a great asset class. I do believe this could become a great asset class, cryptocurrency.”

But, he also added: “I don’t believe it’s a substitute for currencies. I think we are going to have cryptocurrencies of dollars, cryptocurrencies of other currencies. I don’t believe we should think about crypto as a substitute for currencies. I am fascinated by it as an asset class.”

He went on to say that “I am still watching … We are investing in it … We are studying it. We made money on it. Our investors worldwide, we don’t have that much inquiry on it.”

When asked if BlackRock’s institutional clients are interested in having crypto in their portfolios, he said:

“We are not having those conversations,” adding that “maybe they are talking to somebody else.” He continued: “I don’t want to suggest that we have perfect information but our broad base client relationships, we have had very little interconnectivity on the conversation on crypto other than a fascination.”

The CEO also added that “The amount of conversation we are having on climate risk and how they can navigate their portfolios is a major component of the conversation. The conversation about deficits and the conversation we are having on inflation risk is far more dominant for our clients worldwide than the whole conversation about crypto.”

He also mentioned the Reddit and Gamestop controversy, saying that “We didn’t have any conversations around Reddit and Gamestop and what does that mean with our clients either, and yet it represents a major component of the markets. It’s fascinating to watch.”

Fink concluded by saying:

“So, I do believe there is a component of the financial markets about crypto that is real, that is growing. But, if you’re asking specifically about long-term investing, from sovereign wealth funds, from pension funds, from retirement services, from big family offices, the conversation about crypto is a very minor conversation compared to other conversations.”

In the past, the CIO of Global Fixed Income of BlackRock, Rick Rieder, declared that “cryptocurrency is here to stay” and that Bitcoin may replace gold, while Fink himself said that Bitcoin makes the US dollar less relevant and mentioned that crypto can evolve to be a global market. In February, it was divulged that BlackRock had also invested in Bitcoin.

Source: News.bitcoin.com

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