Blackrock CEO Larry Fink called Bitcoin an “under-tested” asset despite recent statements of willingness to invest in it.
Last week, the management of the investment company Blackrock announced preparations for investing in bitcoin through the purchase of futures contracts. The company has even filed applications with the US Securities and Exchange Commission (SEC).
In filings, Blackrock mentioned that the company may use derivative financial instruments related to bitcoin as part of its investment scheme. This suggests that Blackrock is exploring the possibility of more active participation in the cryptocurrency industry. However, filing with the SEC does not yet speak of a final decision to enter the market.
In a recent interview, Fink expressed controversial thoughts about Bitcoin. The Blackrock chief said bitcoin is a highly volatile asset that circulates in a “too small market” compared to traditional assets. Fink stated that the first cryptocurrency could be seen as an additional store of value, but it hasn’t been sufficiently tested yet.
“Bitcoin has tremendous inherent volatility, but its long-term viability has yet to be proven. Certain forms of digital currency will certainly play a big role in the future. It could be Bitcoin or other developments, ”added Fink.
Perhaps he was referring to government digital currencies, on which many central banks began to actively work. However, other company executives have previously expressed more optimistic views on Bitcoin. For example, in November last year, BlackRock CIO Rick Rieder said that Bitcoin “will stay forever” and may even overtake gold.
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