$9.5T Asset Manager BlackRock is Studying Crypto, “We Believe That Will Play A Very Large Role”

$9.5 Trillion Asset Manager BlackRock is Studying Crypto, CEO says “We Believe That Will Play A Very Large Role”

Larry Fink, the CEO of the world’s largest asset manager, BlackRock doesn’t understand much about Bitcoin but said he sees huge opportunities in digitized currencies.

“I see huge opportunities in a digitized crypto-blockchain-related currency and that’s where I think it’s going and that’s going to create some big winners and some big losers,” he said during his conversation with CNBC.

But when it comes to the trillion-dollar asset BTC, Fink said he is “not a student of bitcoin” and does not know where it’s going to go.

“I can’t tell you whether it’s going to $80,000 or zero.”

“But I do believe there is a huge role for a digitized currency and I believe that’s going to help consumers worldwide.”

Interestingly, Bitcoin jumped 5% to nearly $57,300 on Wednesday, continuing the green month in which the cryptocurrency is up more than 30%.

When further asked about JPMorgan CEO Jamie Dimon calling the leading cryptocurrency “worthless,” Fink said he’s “probably more on the Jamie Dimon camp.”

In an interview this week, Dimon said, “(Bitcoin) makes no difference to me” but added, “Our clients are adults. They disagree. That’s what makes markets.”

But that doesn’t mean, the asset manager isn’t interested in the crypto market as on being asked when he has shifted in his view in offering access to crypto to BlackRock investors, Fink said,

“We’re studying blockchain and the whole concept of crypto and we believe that will play a very large role.”

Back in February, BlackRock’s chief investment officer of global fixed income Rick Reider said the firm had “started to dabble” in crypto assets. Then in a filing with the Securities and Exchange Commission (SEC) dated July 31 showed that the BlackRock Global Allocation Fund had been trading Bitcoin futures. The asset manager giant has also invested millions in Bitcoin mining companies.

On Wednesday, the New York firm reported a 16% increase in revenue to $5.05 billion while its assets under management jumped 21% to $9.46 trillion, as of Sept. 30 from $7.81 trillion a year earlier.

Earlier this week, at the Institute of International Finance, Fink had commented on inflation, saying he doesn’t believe that it is transitory.

“I’m not calling for stagflation — I don’t see any evidence of that — but do I see persistence in inflation? Yes.”

“I think it’s more than transitory related to supply-chain issues and commodity prices.”

While President Rob Kapito said at the time some clients are increasing allocations to various alternatives from 1% to up to 20%, the CEO said some are allocating more to equities.

“I don’t think there’s one global trend of going in and out of one product because [there are] inflationary fears and some clients don’t believe in that.”

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Author: AnTy

$9.5T BlackRock CEO says, Investors May Not Come to Them for Crypto, Not That “Type of Demand”

$9.5T BlackRock CEO says, Investors May Not Come to Them for Crypto, Not That “Type of Demand”

This could be why Larry Fink didn’t take a single question about crypto in the past two weeks while on his business travels but for the US stock market, he believes “the trend line is still going to be upward,” due to “the amount of cash that is looking to be put to work.”

BlackRock CEO Larry Fink said he does not see much demand for crypto assets.

In an interview with CNBC Squawk Box published Wednesday, Fink said while he has been asked about Bitcoin and cryptos, in the past two weeks of his business travel, not a single question has been asked about digital assets.

“That is not part of the focus on retirement and long-term investors,” he said, adding, “We see very little in terms of investor demand on those types of things.”

While acknowledging that that kind of demand may not come to the asset manager, he said retirement funds are more interested in their portfolio over the long term. Fink said,

“Quite frankly, they may not come to BlackRock for that type of demand, but I would say for all the pension funds and insurance companies, for all that RIAs that we are talking to for their clients on behalf of their retirements, the dialogue is about how should I navigate my portfolio and how should I think about my portfolio over the long horizon.”

Previously, the CEO of the world’s largest manager said the leading cryptocurrency “had caught the attention and the imagination of many people” who are “fascinated” by it but noted that it hadn’t proven its long-term viability.

Just back in April, he said, Bitcoin can become a “great asset class.”

At the time as well, he said, “We make money on it, but I’m not here to tell you that we’re seeing broad-based interest by institutions worldwide,” adding that institutions may be “talking to somebody else.”

Upwards Trajectory

The asset management firm reported an adjusted quarterly profit of $10.03 per share during the quarter, beating the estimate, and had its assets under management surging to a record $9.49 trillion.

Still, BlackRock today fell 1.4% in premarket action.

Meanwhile, in his interview with CNBC, Fink said the long-term trend remains strong while talking about the US stock market. But, of course, he’s “not” saying that it’s going to be a straight-line upward. He added,

“But overall, with the amount of fiscal stimulus and monetary stimulus, and more importantly with the amount of cash that is looking to be put to work, I believe the trend line is still going to be upward.”

This, combined with low or negative rates is why, “Asset owners are the biggest beneficiaries of monetary policy,” he said.

As for meme stocks, Fink is hoping for improved financial literacy so that instead of only focusing on speculating, more people are investing in the long run — “I look at this as a possibly good first step,” he said.

However, he does not believe that inflation will be transitory as the Federal Reserve has been emphasizing; rather, it will be “more systematical.” Fink said,

“I believe it is a fundamental, foundational change in how we navigate economic policy…now we are saying jobs are more important than consumerism.”

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Author: AnTy

$7.8T AUM Firm, BlackRock Gears Up For Bitcoin Exposure; Approves 2 Funds to Invest In BTC

$7.8T AUM Firm, BlackRock Gears Up For Bitcoin Exposure; Approves 2 Funds to Invest In BTC

With more than $7.8 trillion in assets behind it, BlackRock represents one of the largest asset managers in the world and has recently indicated a turn towards cryptocurrencies. This turn is according to filings it recently approved from two of its funds. Specifically, BlackRock approved BlackRock Global Allocation Fund Inc. and BlackRock Funds V, according to prospectus documents filed and submitted to the US Securities and Exchange Commission.

For the moment, BlackRock has yet to specify which commodities exchanges would be used in order to complete the purchase of Bitcoin Futures. But, according to the asset manager, the approved funds will only be allowed to invest in cash-settled futures, to mitigate risk, and there are still some that BlackRock observes:

“A Fund’s investment in bitcoin futures may involve illiquidity risk, as bitcoin futures are not as heavily traded as other futures given that the bitcoin futures market is relatively new.”

BlackRock’s Steady Walk to Bitcoin

BlackRock’s move towards investing in Bitcoin comes as a profound surprise for many. Up until recently, the investment management company had done little to allude to such a move. However, any filings under the SEC have proven to serve as a pretext for diving into new investments.

During a panel discussion in December, BlackRock CEO Larry Fink hinted at the growing legitimacy of digital assets as their asset class, but expressed caution to those expressing impetuosity, stating that “we have to go through many markets to see if it’s going to be permanently real.”

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Author: James Fox

World’s Largest Asset Manager, BlackRock, to Hire a VP to ‘Drive Demand’ for Crypto Offerings

World’s Largest Asset Manager, BlackRock, to Hire a VP to ‘Drive Demand’ for Crypto Offerings

The New-York VP of blockchain requires experience in the technological foundations of blockchain technology who will be devising fundamental valuation methodologies for crypto-assets.

Well, no surprise there.

Given that everyone is jumping on the bitcoin and cryptocurrency bandwagon, this is to be expected. BlackRock, which has about $7 trillion assets under management, has been turning Bitcoin-friendly.

It all started in November when BlackRock CIO of Fixed Income Rick Rieder not only said that Bitcoin and cryptocurrencies are here to stay but that digital gold can replace yellow metal someday.

A few days back, Reider also said that there is “clearly greater demand than supply.”

At the beginning of this month, CEO Larry Fink talked about Bitcoin catching the attention of people which can possibly evolve into a global market asset that is while questioning the US dollar’s status as a reserve currency.

And now, BlackRock is hiring a vice president to “drive demand” for its crypto offerings.

As per the job vacancy, the New-York VP of blockchain will have at least one year of experience in the technological foundations of blockchain technology including cryptographic hash functions, distributed network consensus mechanisms, and public-private key cryptography.

The candidate will be creating and articulating fundamental valuation methodologies for digital assets; evaluating game theory and decentralizing governance models; and work with key drivers of blockchain networks’ design and their impact on speed, scalability, privacy, and security.

He/she has to “create and implement strategies designed to drive demand for the firm’s offerings and enhance the value proposition to clients of the firm’s investments and technology offerings,” reads the description.

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Author: AnTy

BlackRock CEO Larry Fink Says Libra Is Not A Cryptocurrency, Wants Technology to Interchange Currencies

BlackRock-CEO-Larry-Fink-Says-Libra-Is-Not-A-Cryptocurrency-Wants-Technology-to-Interchange-Currencies

BlackRock is the largest money-management firm in the world with more than $6.5 trillion in assets under management and Larry Fink is their CEO with over a billion dollars of net worth. He appeared on CNBC recently:

Fink said many of his clients and hedge funds are taking risk off the table. However, he believes such a move is a mistake, and he advised investors to stay invested in stocks. He thinks that people are under invested in equities.

Fink indicated that there is a huge need to democratize the exchange of foreign currencies in cross-border transactions and to bring down the fees of the interchange. He showed that there is a huge problem when it comes to making cross border payments, claiming that people who are making cross border payments are paying a huge amount in fees to organizations charging from 5-10% on each transaction.

He said:

“I actually believe that the idea about libra — I don’t think we need to create a new currency, but the technology to instantaneously calibrate all the currencies. That should be done. You don’t need a libra. you have computers that can monetize and calibrate euro to dollar instantaneously for a couple of basis points.”

Fink was openly against bitcoin for a long time now. Calling out the whole asset class as illegal, he has cited three main concerns to back up his claim. The infamous unpredictable price swings, the mostly anonymous nature of the market and the unregulated playing field make him feel he has a case.

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Author: Sritanshu Sinha