BlackRock CEO Larry Fink believes that cryptocurrencies will be a “great asset class” in the future. For long-term major investors, however, they only played a minor issue
The crypto space is prospering. Whether Bitcoin, Ethereum, BNB or Dogecoin, almost every crypto currency has seen enormous price gains since the end of last year. The digital assets are becoming increasingly popular with both institutional and private investors. Now the burgeoning asset class is receiving high praise from none other than Larry Fink, CEO of the world’s largest asset manager: BlackRock.
In a Broadcast by CNBC the BlackRock founder was optimistic about cryptocurrencies. He told the US broadcaster:
It will likely be a great asset class, I believe in it. […] At the same time, however, I don’t think they are a substitute for real currencies. I think we will see cryptocurrencies from dollars and cryptocurrencies from other currencies. But I don’t think we should think about cryptos as a currency replacement. Still, I am fascinated by it as an asset class.
BlackRock CEO Larry Fink to CNBC
At the same time, however, the BlackRock CEO warned against oversubscribing the narrative of institutional crypto investors. Although it can certainly be observed that there is an increased interest on the part of professionals towards crypto assets, the topic of cryptocurrencies would currently be of secondary importance for the majority of long-term investors – such as pension or state funds.
Larry Fink had already attracted attention repeatedly in the past with statements about Bitcoin or other crypto currencies. The word of the boss of the largest asset manager in the world carries weight. It was not until January that the BlackRock CEO attracted media attention with statements about Bitcoin when he said that cryptocurrency had the potential to be a digital store of value. In addition, BlackRock is already indirectly invested in Bitcoin through its stake in MicroStrategy. However, the future will tell whether the indirect investment will turn into a direct investment.