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World's Largest Asset Management Firm Looks at Bitcoin, BlackRock CEO: Could Develop into a Global Market Asset

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Larry Fink, CEO of BlackRock, one of the world's largest investment management companies, has made a rare comment on Bitcoin, stating that it could potentially evolve into a global market asset.

Bitcoin Still a Niche Market

Founded in 1988, BlackRock (BLK) is headquartered in New York City, with 74 offices in 26 countries worldwide, including Taiwan. It is one of the largest investment management companies globally, managing assets worth $7.4 trillion.

During a global economic seminar held by the Council on Foreign Relations (CFR), BlackRock CEO Larry Fink, in a conversation with former Bank of England Governor Mark Carney, mentioned that Bitcoin could evolve into a global market asset. He stated:

"Bitcoin has caught the attention of many and captured the imagination, although it remains an untested and relatively small market compared to other asset classes. Can it become a global market asset? Possibly."

US Dollar Hegemony at Risk

Fink also mentioned the practical impact of digital currencies on the US dollar, believing that it will reduce the relevance of globally dollar-denominated assets and impact the demand for the dollar as a reserve currency.

In fact, towards the end of November, Rick Rieder, BlackRock's Global Fixed Income CIO, expressed optimism about Bitcoin. On CNBC's Squawk Box, he stated:

"It's hard to say if it's worth buying at the current trading price. But, is it a durable mechanism? Can it largely replace gold? Yes, I think so, because in terms of the value transfer function, it is much more useful than gold."

In fact, many Wall Street heavyweights have come out in support of Bitcoin this year, including billionaire hedge fund manager Stanley Druckenmiller and Paul Tudor Jones. But perhaps the most interesting is the publicly traded company that made headlines by allocating cash reserves to Bitcoin, MicroStrategy.

According to CNN Business data, BlackRock holds 15.24% of MicroStrategy's shares, making it the largest shareholder. Since MicroStrategy entered the Bitcoin market, its value has increased by over 80%, which may be one of the indirect reasons BlackRock is paying attention to Bitcoin.