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BlackRock, the world’s largest asset manager with about $9 trillion in assets under management, is studying cryptocurrencies to determine whether they can offer countercyclical benefits. During the company's annual meeting on Wednesday, the company CEO Larry Fink said in response to a shareholder asking if BlackRock would invest in Bitcoin,
“The firm has monitored the evolution of crypto assets. We are studying what it means, the infrastructure, the regulatory landscape.”
This isn’t the first time Fink or BlackRock has covered Bitcoin. It has actually been going on for some time. In January, he said that the asset manager is exploring Bitcoin, which could be another store of wealth and a “great asset class,” but cautioned that it hadn’t proven itself yet. The firm actually held some CME Bitcoin futures contracts at the beginning of 2021. Chief Investment Officer, Rick Reider, has also talked about Bitcoin’s demand outstripping its supply, making it “a storehouse of value.” But BlackRock has yet to clearly come out and declare any investment in Bitcoin yet. "The asset manager is a long-term investor", Fink said. And while cryptocurrencies could potentially play a role long-term as an asset class similar to gold, for now, it is too early to determine if they are “just a speculative trading tool,” he said. Fink further noted that broker-dealers are the ones making the most money from the volatility of cryptos and their wide bid-ask spreads.