NEW YORK: Chief executive of BlackRockLarry Fink said on Wednesday that they are studying cryptocurrencies like bitcoin to determine whether the asset class could offer countercyclical benefits.
One shareholder asked whether the company would invest in bitcoin. Then Fink replied in its annual meeting: “The firm has monitored the evolution of crypto assets.” He added furthermore that they are studying what it means, the infrastructure, the regulatory landscape.
For now, it is too early to say whether cryptocurrencies are “just a speculative trading tool” he said. Earlier in this meeting, BlackRock said all of its 16 director nominees were elected with a majority of shareholder votes cast.
A shareholder resolution to convert the company into a public benefit corporation was rejected as it received only 2.3% of the vote.
Other investors in the round included Fidelity Investment Inc., Marshall Wace, etc. Asset management giant BlackRock is studying the crypto sector deeply, said BlackRock CEO Larry Fink, in a conference call reported by the Wall Street Journal.
On Tuesday, crypto payments company Circle, which manages the USD Coin stable-coin, announced partnering with BlackRock as a strategic advisor after a $400 million funding round, as The Block previously covered.
In today’s conference call, CE Fink said BlackRock has been working with Circle for the past year managing some of the company’s cash reserves, with the motive of becoming the primary manager of those reserves.
Within crypto, BlackRock is looking at assets, stable coins, permission blockchains, and tokenization. “We are increasingly seeing interest from our clients,” he said on the call, which he also mentioned in a letter to shareholders last month.
In the same letter, chief executive Fink had also mentioned that the firm is “studying digital currencies, stable-coins and the underlying technologies to understand how they can help us serve our clients.”
#BlackRock is studying digital assets, including #Bitcoin and #cryptocurrency:-
— Coinmomo Official (@CoinmomoHub) April 14, 2022
This is a massive money manager and an investor in a $400 million fundraising round for Circle Internet Financial, the crypto-focused company that manages the stable-coin USD Coin.
BlackRock is the world’s largest asset manager running appx $9 trillion. And it is a long-term investor, Fink said. Cryptocurrencies could potentially play a role in long-term investing as an asset class such as gold.
What is the BlackRock’s first-quarter earnings release:-
- $31 million from the year-ago period.
- Net $2.8 billion from active fixed income funds.
- A 71% enlargement over the year-ago period thus Institutions counted $47 billion to BlackRock funds overall in the first quarter.
- BlackRock documented flows of $45 billion to Europe, the Middle East, and the African region. That compares to $41 billion in Asia-Pacific and $28 billion in the Americas.