BlackRock chief says cryptocurrencies have long-term potential

The $9 trillion asset manager BlackRock is studying cryptocurrencies with a view to hedging market cycles. This was stated by Chief Executive Larry Fink at the annual shareholders meeting, Reuters reports.

“The firm is watching the development of crypto assets. We are examining what this means—the infrastructure, the regulatory space,” the BlackRock CEO replied when asked about investments in digital assets.

According to Fink, the firm is interested in long-term investments in which cryptocurrencies have a potential comparable to gold.

He noted that at this stage it is still too early to determine whether digital assets are merely speculative trading instruments. Brokers stand to profit the most from cryptocurrency volatility, Fink added.

Earlier, the BlackRock chief stated that Bitcoin will not replace fiat money, but could become a major asset class. He was skeptical about institutional adoption of digital gold.

Earlier in April, BlackRock added Bitcoin futures to its portfolio, traded on the Chicago Mercantile Exchange.

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