BlackRock – one of the largest asset managers in the world – has set up a committee to investigate ways it can leverage the fast-growing digital currency market irrespective of the fact that Bitcoin (BTC) was lambasted by its chief executive late last year.
The Investigation Team of BlackRock
BlackRock – currently managing assets worth over $6.3 trillion – has put together a team from different aspects of business to investigate digital currencies as well as its underlying technology – blockchain. The investigation group, which includes Terry Simpson – a multi-asset investment strategist in New York – will figure out whether the firm should invest in Bitcoin future or not.
The team is also investigating what the rivalries of the firm are doing with digital currencies and how it could have a positive effect on its business. The team will report to senior management. A spokesman of the BlackRock said that the firm has been observing blockchain tech for some years now, but they refused to say anything about digital currencies.
Larry Fink’s Earlier Remark on Bitcoin (BTC)
The creation of the team seems to be a turning point for the firm after the chief executive – Larry Fink said that Bitcoin (BTC) was just “speculative,” and he made this comment late last year. He also added that the digital currency is a device people use for money laundering.
BlackRock isn’t the first to trace back its steps. Last year, Jamie Dimon – the CEO of J.P Morgan – called digital currencies a fraud. Nevertheless, the financial institution later moved its head of fintech and gave him the task of exploring the use of cryptos.
A lot of industries and firms in the world are increasingly interested in getting into and leveraging the asset class. Fidelity Investments – an asset management firm that manages assets worth $2.4 trillion – has started a hiring spree, while Goldman Sachs also announced starting up a digital currency trading desk.