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

April 16, 2021 | Digital Assets, News

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

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
Digital Assets: Colonial Pipeline Caved; Paid $5M Ransom To Hackers
May 14, 2021     Digital Assets, News

Though initial reports said that Colonial Pipeline would not pay a ransom to the hackers that brought the nation’s largest fuel pipeline to a halt, Bloomberg reported Thursday that the…
Artificial Intelligence: A Molecule For Alzheimer’s Created By Exscientia’s AI Enters Clinical Trials

Oxford, UK-based Exscientia uses AI to design and create drug candidate molecules satisfying complex therapeutic requirements with revolutionary efficiency. Joint research by Exscientia with Sumitomo Dainippon Pharma Co., Ltd. (TYO:…
Venture Capital: Vinted, The Marketplace For Previously Owned Clothing, Raises $303M
May 13, 2021     News, Venture Capital

Vinted, a European startup that runs a marketplace for used clothing and home goods, announced its raise of $303 million at a valuation of $4.5 billion, post-money. That valuation is…
FinTech: German Regulator BaFin Hauls Up N26 On Money Laundering Lapses
May 13, 2021     FinTech, News

On Wednesday, Germany’s Federal Financial Supervisory Authority (BaFin) ordered challenger bank N26 to implement appropriate internal controls and safeguards and comply with general due diligence requirements to prevent money laundering…