BlackRock CEO “Fascinated” by Bitcoin, Watching Closely


Key Takeaways

  • The chief executive officer of BlackRock said that he is not seeing significant institutional inflows or interest in cryptocurrency.
  • BlackRock’s Larry Fink says cryptocurrency has the potential to evolve into a “great asset class.”
  • Goldman Sach’s CEO expressed similar sentiments in an earnings call yesterday.

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The CEO of BlackRock, a firm with $8.6 trillion in assets under management (AUM), told the media the “cryptocurrency might become a great asset class.”

However, there is “little” interest among institutional investors at the moment. 

BlackRock’s Bitcoin Outlook

The managing director and chief investment officer of BlackRock, Rick Rieder, sounded confident that Bitcoin would replace gold in November.

In January, the firm formalized its intention to trade in Bitcoin futures on CME in an SEC filing. 

CEO Larry Fink today told CNBC that while he is optimistic, he disagrees with the idea that institutions are flooding capital into crypto. Fink said:

“Our broad-based client relationships have shown little interconnectivity on the conversation on #crypto other than a fascination.”

Moreover, he definitely does not see it as a replacement for the fiat. 

Numerous multinational asset management firms and banks have started offering Bitcoin investment products to their wealthy clients.

These include individual investors, family offices, retirement funds, endowments, insurance companies, and other large entities. Morgan Stanley and Goldman Sachs allocated GBTC to existing corporate funds. 

During the bank’s earnings call yesterday, Goldman Sach’s CEO David Soloman iterated similar sentiments by saying that the market is currently evaluating “[crypto’s] possibility as a store of value.” 

The asset managers certainly do not want to miss out on the opportunity. Even Fink said that they have “invested in, and made money” from it. However, the firm remains skeptical about its long-term prospects as opposed to climate change solutions and technology stocks. 

Overall, Fink is bullish on investment assets. He feels that much of the money hoarding from last year will soon pour back into the markets. 

The U.S. economy contracted by 4.27% in 2020 as the world came to a halt due to lockdowns. In 2021, the projected growth is just above 3%. 

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