Larry Fink, CEO of wealth management firm BlackRock, said so in a speech to the nonprofit external relations panel earlier this week Bitcoin had “drawn the attention and imagination of many people” and was poised to grow as an asset class.
The comments came when Bitcoin broke just above its value Always high price from nearly $ 19,800 on multiple crypto exchanges yesterday before falling below $ 19,000. It has crawled back over the line since then, but has lost some of its momentum.
Fink noted that Bitcoin is still a niche market with huge upside potential. “Still untested, pretty small market compared to other markets,” he said.
He pointed to the asset’s infamous volatility (Bitcoin fell around $ 900 in minutes just yesterday) but noted that there is potential for an upward move. “It’s a thin market. Can it develop into a global market? Possibly, ”said Fink.
BlackRock, the world’s largest fund manager with $ 7.2 trillion in assets, caters to family offices, retail investors, fund managers and pension funds. And while it’s not yet immersed in the crypto market, some of the company’s top executives have previously spoken positively about cryptocurrencies.
The positive predictions are not modest either. BlackRock CIO Rick Rieder went that far just last month Bitcoin could replace gold and was “here to stay”. The addition of the asset showed incredible stamina and was generally well received by the Millennials, unlike the yellow metal.
“Do I think it’s a permanent mechanism, do I think it will largely take the place of gold? Yes, I do that because it’s so much more functional than passing around a gold bar, ”said Rieder at the time.
While BlackRock has yet to announce an official commitment to Bitcoin, it indirectly holds a small amount. The fund manager reportedly owns 15% of enterprise software company MicroStrategy, which has announced a mammoth Investment of $ 425 million in Bitcoin earlier this year.
That bet is already up over 60% – a return that even BlackRock can’t ignore.