BlackRock Still Keeping a Close Eye on the Crypto Market! CEO: Defining Bitcoin as Speculative is Premature Now

According to reports, the world's largest asset management company BlackRock is closely monitoring the developments in the cryptocurrency market. CEO Larry Fink stated: "It is still too early to consider Bitcoin as a pure investment tool at this stage."

Calling Bitcoin Speculation Premature

According toReuters, Larry Fink, the CEO of BlackRock, was asked by shareholders at the annual meeting whether the company would invest in Bitcoin. In response, Larry Fink stated:

"The company is watching the development of crypto assets. We are studying its implications, infrastructure, and regulatory environment."

Despite the significant price correction in the cryptocurrency market last week, with Bitcoin dropping by 30% in a single day and the entire cryptocurrency market losing over $500 billion in market capitalization, Larry Fink believes it is premature to define Bitcoin solely as a speculative trading tool. He also pointed out that brokers and trading services make the most money from the volatility and wide buy/sell spreads of cryptocurrencies.

From Larry Fink's comments, it seems that he still believes in the potential of cryptocurrency technology to function as a long-term investment asset, much like gold. In fact, the CEO expressed his interest in Bitcoin last month and claimed that it will soon become a "great asset class."

BlackRock's Bitcoin Exposure

Interestingly, while BlackRock has not yet purchased Bitcoin, some of its funds are indirectly exposed to Bitcoin, such as being a major shareholder of MicroStrategy, a U.S.-listed company that holds a significant amount of Bitcoin. BlackRock owns about 15.24% of MicroStrategy, whose cryptocurrency holdings on the balance sheet exceed $4.2 billion.

On the other hand, according to previous reports, BlackRock also seems to be interested in trading Bitcoin futures contracts under the Chicago Mercantile Exchange. However, it may still be premature to expect BlackRock to start buying Bitcoin spot or introduce Bitcoin products for clients in the short term, as the recent major drop once again highlighted the liquidity and stability issues in the Bitcoin and other cryptocurrency trading markets. Until these issues are resolved, the asset management giant overseeing $9 trillion in assets may continue to observe cautiously.