Interest from Blackrock makes the price of BTC jump
Blackrock Inc. is the world’s largest asset manager and ETF provider. When news broke that it was exploring the possibility to legally partake in the cryptocurrency market, the price of a single BTC jumped by $270. Blackrock controls a portfolio worth an incredible $6 trillion, and their interest in taking advantage of the growing market is making quite a stir.
But Blackrock has not always been so open to the concept of cryptocurrency, having previously doubted its potential and reliability. Then, this morning an insider leaked information to the media stating that the largest ETF provider in the world has created a working group comprising of members from a range of different divisions. The source also stated that the team will be investigating cryptocurrencies in detail with the idea of determining whether Blackrock should be involved.
Back in October 2017, the Global Head of iShares and Index Investments at Blackrock said:
“I don’t quite get the point of a bitcoin ETF in any case, because we’re talking about…trading products that are difficult to access. If bitcoin is ever successful – and again not my thing but – I wouldn’t recommend it. But if it were [successful], why would you need an ETF to access it?”
This was followed by comments earlier this year by Isabelle Mateos y Lago, the Chief Multi-Asset Strategist and Managing director who said she believes that “Bitcoin is not an investable asset”.
A reason for their change of heart could be due in part to the fact that they have lost several of their key team members to the cryptocurrency market for the last 12 months. Senior Portfolio manager, Vishal Karir who oversaw $1.5 billion of assets left Blackrock for a cryptocurrency platform earlier this year. This was followed by the exodus of Adam Grimsley and Michael Wong- two fixed income managers- who quit to launch their own crypto-fund.
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