World's Largest Asset Manager Researching Blockchain but "Finks" Clients Have No Interest Cryptocurrency

More positive movement in the cryptocurrency markets overnight sees the global cryptocurrency gain $7 billion to $270 billion; Bitcoin gained $152 to $6697 and Ethereum also up slightly gaining just $1 to $467.

Some of the overnight gains can undoubtedly be attributed to the “rumours” that the world’s largest asset managers, BlackRock Inc. are plotting a path into the cryptocurrency world. Blackrock has a whopping $6.3 trillion under management so any moves they make in the financial world are inevitably followed very closely indeed given their ability to move markets and prices. However, in what appears to be a somewhat baffling turn of events, the CEO of Blackrock, Larry Fink claimed in an interview with Bloomberg Television yesterday “I don’t believe any client has sought out crypto exposure - I’ve not heard from one client who says, ‘I need to be in this.’” Given the amount of funds under management (the equivalent of 1.5 times the GDP of Japan) I find it difficult to believe not one client has expressed interest in the crypto markets in some form or another – even if it were from the point of view of shorting Bitcoin – not an ideal scenario for the markets of course, but nonetheless still an interest in cryptocurrency from an investment perspective. I doubt even the legendary Bitcoin bashers Warren Buffett and Charlie Munger would attempt to claim all their shareholders have absolutely no interest in the crypto space – despite their claims of “rat poison squared” and “it’s just disgusting, It’s like someone else is trading turds and you decide I can’t be left out.”

Larry Fink has previously expressed disdain for cryptocurrencies, in October last year shortly after JP Morgan Chase CEO was quoted as saying “people who own cryptocurrency are “stupid””, Fink was quoted as saying "Bitcoin just shows you how much demand for money laundering there is in the world, that's all it is." This arguably raises questions about what direction and stance Blackrock are going to take with respect to cryptocurrency and blockchain – judging by the video below – it would appear Fink isn’t too sure either.

One has to wonder if there is no interest from any clients at all – why go to the extent of analysing and exploring blockchain or cryptocurrencies? In the interview when asked if Blackrock needs to be “prepared” to deal with potential demand for crypto products, Fink replies with a flat “no” – which again begs the question of why research it?

It could of course be that Blackrock does have an extensive cunning plan to enter the crypto investment world, but are attempting (very poorly) to keep it under wraps. Another possibility is that Blackrock clients are asking for exposure to the crypto markets and Blackrock aren’t listening (or not admitting they are listening). A third and more likely possibility is that Fink is a staunch, old money banker, being steered by younger management into the space whether he likes it or not in order to keep up with other major institutions that have had a change of direction (Goldman Sachs, Barclays etc.) The only issue with the latter is with Fink retaining his credibility – to manage such a vast amount of cash and claim not one client has asked about exposure to the cryptocurrency markets is just not entirely believable, sounding more akin to a traditional money manager that realizes the financial world is changing and there is no “opting out” for those still in love with FIAT.

New ICO Ratings on ICOformula:

Beyond Protocol (BYND)
Nobar (NBR)
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Disciplina (DSCP)

 

Created: Tuesday, July 17, 2018

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