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Crypto
April 5, 2021

BlackRock and Bitcoin?

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The world's largest investment corporation, asset holder, and financial fund management company BlackRock, based in New York, has decided to offer its clients the opportunity to invest in Bitcoin.

Interest from BlackRock’s side

In January this year, BlackRock already announced the interest of their users in Bitcoin. The company subsequently filed an application with the SEC (US Securities and Exchange Commission). The corporation announced that it held $ 360,000 worth of futures contracts. The expiration of these contracts was due March 26, 2021, on the Chicago Stock Exchange. The total percentage of these assets was only 0.0014% of the entire fund.

black rock investment management company
Figure 1: BlackRock headquarters in New York

BlackRock's clients demand Bitcoin

The company has seen enormous demand for investing in the Bitcoin cryptocurrency from its clients. BlackRock's chief investment officer, Rick Rieder, said that in the foreseeable future, Bitcoin may exceed the market capitalization of gold. And it is exactly this idea that a large number of their investors is playing with. It is mostly thanks to the fact that Bitcoin seems to be an excellent guarantee as a hedge against inflation, and one of the ways to preserve the value of the money earned.

A vision of Larry Fink the CEO of BlackRock

In a 2018 interview with Bloomberg, Larry Fink said that they had absolutely no client who would demand or be indirectly interested in investing in Bitcoin. And that was why BlackRock decided not to deal with Bitcoin and focus on other possible assets instead. Currently, after 3 years, Larry Fink has announced that Bitcoin can become a global market in the future. And Rick Rieder (CIO) from Blackrock has argued that Bitcoin will, to some extent, take the position of gold as the main store of value.

BlackRock - Investment management company

The New York-based company was founded in 1988. It is currently the largest financial asset manager in the world. It has more than 16,200 employees and offices in more than 30 countries with clients all over the world. The company was created by a genius of Robert Steven Kapito and co-founder Laurence Douglas Fink. And it currently manages $ 8.68 trillion in assets.

Bitcoin picture (The money of the future)
Figure 2: Bitcoin - The money of the future

Will BlackRock's interest shape how Bitcoin is perceived in the world of finance?

The very fact that large companies and funds such as BlackRock, VISA, Mastercard, MicroStrategy, Tesla have started offering the option of payment or direct investment in Bitcoin is excellent news for fans of this cryptocurrency.

It can be perceived as the gradual integration of Bitcoin in the world. It also puts Bitcoin in the center of attention and helps it to gain the credibility of the public. Among other things, the involvement of these big companies in the world of Bitcoin also forces all other, albeit smaller, companies to consider the Bitcoin payment method as a viable possibility. And that is something that many company analysts are losing their sleep over because if some companies offer investment or payment with Bitcoin, then other companies are "forced" to come up with this method too, or at least think about it because their customers demand it.

ETF applications are emerging and many of them have been already approved. Wall Street itself has, in a way, accepted Bitcoin (thanks to Morgan Stanley, which offers the opportunity to invest in a Bitcoin-related fund), and some states are interested in Bitcoin and blockchain technology.

Conclusion

If the global implementation of Bitcoin continues, we can really expect that one day Bitcoin's market capitalization will be larger than that of gold. This is supported by the fact that Bitcoin is currently the best investment and store of value over the last few years. And so its popularity, use, and credibility are growing day by day.

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cryptocurrencies
fundamental analysis
bitcoin
Jakub Kralovanský
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Jakub is a crypto trader and founder of Trader 2.0 project, which helps hundreds of traders from central Europe to understand cryptocurrency trading and its challenges. Jakub not only creates an educational content on topics of trading and investing in cryptocurrencies, but also helps the community by creating fundamentally stimulating content about blockchain technology and news from the sector. He will be providing unique content from cryptocurrency world and with his long experience in the industry, he is certain to bring an edge for all Investro.com readers.

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