21:17Blackrock CEO calls Bitcoin an untested asset in a 'very small market'
Larry Fink said he was fascinated with the media hype surrounding Bitcoin but expressed concerns about the crypto asset's volatility and market size.
Just one week after asset manager Blackrock appeared to be preparing to invest in Bitcoin futures, CEO Larry Fink has some mixed messages on crypto.
In an interview with Bloomberg on Wednesday, Fink referred to Bitcoin (BTC) as a volatile asset within "a very small market." The CEO’s remarks continued, with fascination over the media coverage of Bitcoin, given that the “asset category is so small compared to other asset categories.”
“[Bitcoin] could be another store of wealth, but right now it’s still untested,” said Fink. “It has huge volatility, moving in 5-6% increments with small dollar investments moving it.”
BlackRock has indirect exposure to Bitcoin through its ownership stake in business intelligence firm MicroStrategy. The company made an initial $425 million investment in the crypto asset in summer 2020 and has since added thousands more BTC to its holdings.
However, Blackrock may be exploring the possibility of getting more directly involved in the crypto space. Last Wednesday, a pair of prospectus filings for two of Blackrock’s funds appeared on the website for the United States Securities and Exchange Commission. Both mentioned potentially using Bitcoin derivatives and other assets as part of its investment scheme, but neither was definitive about the investment firm’s entry into the Bitcoin futures market.
At the time of publication, the price of Bitcoin is $30,734, having fallen 4% in the last 24 hours.
|Total comments: 0|
|Bitcoin’s Achilles Heel (0)|
|Spanish Court Orders the Investigation of Possible 'Computer Fraud' on Bittrex Exchange After a User Loses 1.3 BTC (0)|
|Bitcoin’s Nosedive below $45,000 Can Open Way to Continued Correction, Ethereum’s Repeats after Bitcoin (0)|