On Monday, The CEO of BlackRock- “Larry Fink” declared that the world’s greatest asset manager has united an operational group to look into the blockchain technology and digital currencies such as Bitcoin, however, alerted that he does not see enormous investor demand.
— Bloomberg Crypto (@crypto) July 16, 2018
Larry Fink has previously condemned against bitcoin, saying it an “index of money laundering”. However, even after the note of caution, few believe that BlackRock’s potential embrace of enhancing the technology as highly significant.
Chris Yoo- a portfolio manager at cryptocurrency hedge fund Black Square Capital Management said;
“As the largest asset manager in the world, its interest in crypto assets could be a catalyst for […] the crypto space”.
London’s Financial News was the first to report the story. Larry Fink later announced the report during an interview with Reuters. He said:
“We are a big student of blockchain. He added, however, he does not see huge demand for cryptocurrencies. I don’t believe any client has sought out crypto exposure”.
The working team is nothing new in fact; they existed since 2015- a source known to the matter informed CNBC.
The Status on the Price of the Cryptocurrencies
The news instantly triggered a 4.5% hike in the value of Bitcoin within two hours. At the moment, the price of one Bitcoin is around $6,738, rise with 5.25% within 24 hours. Some weeks back BTC hit a 2018 drop of $5,787. However, it is not performing that bad by current standards. Although, Bitcoin was doing much better, back in December when it raised around $20,000.
Other digital coins are also enjoying their day: Ethereum is up by 4.6%, XRP by 6.6%, Bitcoin Cash by 9% and EOS by 7.8%.
The Changing Phenomenon
The report by Fortune magazine says that Hedge-fund billionaire- “Steve Cohen” venture arm Cohen Private Ventures funded in “Autonomous Partners”- a crypto-focused investment fund.
Various industrial experts believe that high involvement from institutional funders in the digital space will boost up confidence in an otherwise dubious market.
Mati Greenspan, senior market analyst at eToro;
“It definitely is causing some excitement. The idea of big financial firms moving into crypto certainly isn’t new, and this is a trend we’ve been noticing gaining strength since November”.
Financial regulators are anxious about the speculative nature of virtual currencies and their possible usage in illicit activities. Both China and South Korea ban the initial coin offering, for instance, which seems a method the start-ups are using to trade new digital tokens to drive their business.
Will the Bitcoin price hit the peak value? What will be the next future intimations regarding Cryptocurrencies? Let us know your ideas in the comment section below