The CEO of the world\u2019s largest asset manager BlackRock, Larry Fink, has revealed during an interview that he believes the cryptocurrency market is still \u201cvery small,\u201d but added bitcoin could be a store of wealth. The cryptocurrency, he said, is still to prove itself.<\/p>\n
During the interview with Bloomberg, Larry Fink noted that the price of bitcoin moves in significant increments with \u201csmall movements of money,\u201d and as such is \u201cnot a market for the calm.\u201d Fink said he understands the enthusiasm surrounding cryptocurrencies, and pointed out media talk about crypto so much it \u201cmust have caught the fascination of many people.\u201d<\/p>\n
Business media, he said, seem to believe the flagship cryptocurrency is \u201cgoing to have a huge future,\u201d but pointed out that on the investor side \u201ceveryone is focusing on it, and it could be another store of wealth.\u201d Right now, he said, it\u2019s \u201cstill untested, it has huge volatility moving in 5-6% increment with small dollar investments moving it.<\/p>\n
For cryptocurrencies like bitcoin to be truly successful, Fink said, the market will have to become broader so that \u201cyou can invest large sums of money without moving the value to the extent it\u2019s doing it.\u201d<\/p>\n
The CEO of the $7.8 trillion asset manager pointed out BlackRock is \u201cwatching it\u201d and \u201cenjoying the conversation.\u201d Per his words, the firm is \u201cfascinated by how many people have enjoyed the conversation.\u201d Bitcoin\u2019s long-term viability, he said, has not been proven yet.<\/p>\n
He added that he believes \u201csome form of digitized currency\u201d is going to be playing a bigger role in the future, but said he does not know whether it will be bitcoin or another cryptocurrency that may not have been developed yet.<\/p>\n
Fink\u2019s words come shortly after BlackRock updated prospectuses\u00a0for two of its funds including cash-settled bitcoin futures among assets they\u2019re now permitted to buy. <\/p>\n
The filings, for the BlackRock Strategic Income Opportunities and the BlackRock Global Allocation Fund, would allow the funds to gain exposure to BTC and test the waters of the market.<\/p>\n
Featured image via Pixabay.<\/p>\n