The world’s largest[1] exchange-traded fund (ETF) provider BlackRock announced the formation of a working group to assess potential involvement in Bitcoin[2] (BTC), Financial News (FN) reports[3] today, July 16.
The move furthers a U-turn on BlackRock’s previously critical stance towards cryptocurrency. Following in the footsteps of fellow giant Goldman Sachs[4], the cross-industry working group convened by BlackRock will among other things focus on whether the company should invest in Bitcoin futures[5], FN reports, citing “two people familiar with the matter.”
In general comments to FN, a spokeswoman from BlackRock said the company had been “looking at blockchain[6] for several years” but did not mention cryptocurrency[7].
Experts will be examining competitor moves, the publication paraphrases sources as revealing, indicating Goldman’s U-turn on its previously bearish stance had not gone unnoticed.
Goldman Sachs CEO Lloyd Blankfein had repeatedly told the media that Bitcoin “is not for him,” before a sudden announcement that a dedicated research team[8] was looking at how Goldman could provide a range of cryptocurrency-based products in the wake of customer demand.
BlackRock could well follow suit, despite its CEO Larry Fink describing[9] Bitcoin just prior to last year’s all-time price highs[10] as “an instrument people use for money laundering.”
In February of this year, the company had already stated[11] cryptocurrency options were “under close review,” eyeing “wider” use in future.
BlackRock had just under $6.3 trln in assets under management as of 2017.
The broader narrative that institutional money is waiting its ideal entry point meanwhile continues to circulate among
