Bitcoin prices has soared as BlackRock CEO Larry Fink revealed that they were “studying it and we are looking at how they perform”.
Larry Fink, the chairman and CEO at BlackRock told Bloomberg: “We are looking at it and as I have said in the past, we are very excited about blockchain technology.
“That is where we are looking at it even in the Aladdin universe with what we are trying to do there so we are looking at blockchain technologies.”
He added: “We are studying it and we are looking at how they perform and we are looking at that type of data as we understand it as we think about other products but right now, worldwide I have not heard from one client that needs to be in it right now.”
Mr Fink also told Bloomberg that whilst they are studying the cryptocurrency, they were not currently actively involved in the market.
Bitcoin, the world’s most valuable virtual currency by market value jumped more than 4 percent to $6,612 on the industry Website CoinDesk.
The prices of ethereum and ripple, the second and third-largest currency, also got a boost. Ethereum was up by more than 5 percent while ripple jumped 4 percent.
Financial News report that BlackRock has set up a working group to investigate what its competitors are doing with cryptocurrencies, and how they will shape the investment landscape over the years ahead.
A spokesman from BlackRock told the Express.co.uk: “Like most financial institutions, BlackRock has a working group that meets periodically to exchange information on blockchain and consists of employees from various parts of the Business.
“We have been looking at blockchain technology for several years, recognising potential for shared processes and data across market participants, clearing, settlement and reconciliation and simplified securities issuance.”
Mati Greenspan, senior market analyst at eToro, said of the report on Monday: “It definitely is causing some excitement.
“The idea of big financial firms moving into crypto certainly isn’t new and this is a trend we’ve been noticing gaining strength since November.”
The move towards crypto marks yet another U-turn from a powerful investment juggernaut after Larry Fink, the chief executive, said last year that bitcoin was merely “speculative” and that the only reason it thrived was due to its anonymity.
He said: “It is an instrument people use for money laundering.”
“The reason why it does so well is it is anonymous. It’s anonymous, and it’s cross-border.
“If you legitimise it, you know who your counterparties are. The question is how many people will use it if you have to acknowledge you are a buyer or a seller.”
Cryptocurrencies have also faced criticism by banks and finance experts, with billionaire Bill Gates telling CNBC he would bet against the bitcoin and short it if he could.
The Microsoft co-founder said: “As an asset class, you’re not producing anything and so you shouldn’t expect it to go up. It’s kind of a pure ‘greater fool theory’ type of investment.”
Source : EXPRESS