The prices of almost all the major crypto coins surged yesterday after the rumors of BlackRock’s involvement in cryptocurrency circulated. Bitcoin price showed a 10% spike, with Ethereum and Ripple showing 8.5% increase in their values. It is pertinent to mention that BlackRock is an asset manager firm with $6.2 trillion capital. Financial News London has surfaced the rumors for the first time on Monday. According to the rumors, the BlackRock is going to make a team of financial and crypto experts to investigate the ecosystem of cryptocurrency. There are also rumors that ETF (Exchange Traded Fund) giant is planning to invest in Bitcoin, the most valuable cryptocurrency in the world.
This team of professionals would comprise of various specialists from within the company. The official spokesperson of the company has not yet confirmed this rumor and said that BlackRock has been trying to delve deep into the fields of blockchain and cryptocurrencies for many years. The news has surged $225 in the Bitcoin’s price that has crossed $6600 mark. The other cryptocurrencies in the list of top ten have also shown an increasing trend of about 4 to 6 percent.
The financial experts are of the view that BlackRock CEO has taken a U-turn because he used to oppose investing in cryptocurrencies. It could be recalled that last year, he criticized cryptocurrencies by saying that these are speculative and may cause money laundering. But now, Larry Fink seems interested in cryptocurrencies because many high-profile billionaires, banks, financial institutions, and remittance companies have started investing in cryptocurrencies. BlackRock also has the power to shake the high finance in a split second.
Larry Fink has denied these rumors in an interview with Bloomberg, saying that any of BlackRock clients does not seem interested in crypto assets. However, the company is keeping an eye on cryptocurrencies and is checking if these could ever benefit the company after legitimization. It is important to mention that cryptocurrency world had to face bans and regulations in 2017. Now, almost all of the financial regulators and firms are thinking of cryptocurrencies as a possible alternative to fiat currency in the near future.
Isabelle Mateos Y Lago, the global chief multi-asset strategist in BlackRock, contradicts the statements of the CEO and says that a lot of people are interested in Bitcoin. Although Bitcoin is not an investable crypto asset, they would keep an eye on ups and downs in its value. People are hopeful that Larry Fink and BlackRock will change their views about cryptocurrencies in the future. People are optimistic in thinking that Fink and BlackRock will be similar to JP Morgan, which had previously denied the investment in cryptocurrencies by saying that these are fraud but now has active involvement in cryptocurrencies.
Although cryptocurrencies are passing through trials and tribulations, investors are hopeful that cryptocurrencies will regain their values in the near future and will prove themselves as a good alternative to fiat currencies. When this happens, it would attract BlackRock and many other major players to join the pool of cryptocurrency investors.
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