The largest independent asset manager BlackRock initiates crypto efforts. A team has been put together to check whether the entry into the crypto business is worthwhile for the giant.
The world’s largest asset manager BlackRock, with 6.3 trillion US dollars, checks whether investing in crypto currencies is worthwhile. BlackRock now put together a team of experts to investigate the fundamental structure of crypto currencies, the blockchain, for their own purposes. Furthermore, the experts will see how the competition will contribute to the field of crypto currencies. This examines how the actions of the competition could influence the company’s own business.
A turnaround in the financial sector
The composition of this team shows that the crypto currencies are probably not as insignificant for the New York financial business as Larry Fink claimed last year.
They are “speculative”, “an instrument for money laundering” and the only reason for the flourishing business is anonymity, according to the BlackRock CEO. But that’s not all: Fink also said that crypto currencies are far from providing a perspective for institutional buyers. Furthermore, none of BlackRock’s customers are interested in the digital currencies.
Now BlackRock has even brought the New York financial and investment strategist, Terry Simpson, to help. Let him see if BlackRock should really invest in Bitcoin in the future.
But Fink is not the first in his industry to change his mind
JPMorgan CEO Jamie Dimon also called crypto currencies “fraud” in the past. He would dismiss any banker he caught investing in crypto currency. However, JPMorgan’s chief investigator for Fintech has since been appointed to investigate digital currencies.
Despite many critics, more and more companies in the financial metropolis are opting to invest in crypto currencies. For example, the USD 2.4 trillion asset manager Fidelity Investments, which only last month decided to develop its own crypto currency exchange. It remains to be seen which companies will participate in this movement in the future.