Digital Assets: BlackRock’s Larry Fink Says Cryptos “Can Become A Great Asset Class”

April 16, 2021 | Digital Assets, News
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However, institutional clients at the world’s biggest money manager don’t seem to be too interested.

BlackRock’s CEO Larry Fink, giving his views on cryptos in a CNBC interview on Thursday, said large and long-term investors such as retirement funds, sovereign wealth funds, and family offices didn’t appear to be too interested in investing in cryptos. (Decrypt)

The deep pockets have other concerns

“I do believe there’re components in the financial markets about crypto that are real, that are growing, but if you’re asking me 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 so many other conversations,” he said.

Instead, BlackRock’s (NYSE: BLK) conversations with these investing titans delved more on issues such as climate risk, deficits, and inflation.

He was quizzed that his views appeared to run counter to the current market narrative that institutions were “desperate” to be a part of the crypto story.

Fink clarified: “I don’t want to suggest that we have perfect information, but our broad-based client relationships have had… very little inner connectivity on the conversation on crypto.”

In the context of his remark about “components” of the financial markets, Fink added: “We didn’t have any conversations around Reddit and Gamestop (NYSE: GME) 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 on cryptos as an asset class

Fink was categorical that cryptos were no substitute for currencies, but did seem to imply that stablecoins (“cryptocurrencies of dollars”) were a more viable proposition.

“I don’t believe it’s a substitute for currencies, I think we’re gonna have cryptocurrencies of dollars, cryptocurrencies of other currencies, but I don’t believe we should think about crypto as a substitute of currency but I am fascinated by it as an asset class.”

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

Related Story:   BlackRock Dips Its Toes In Bitcoin Waters

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