Bitcoin rallies as BlackRock establishes a cryptocurrency working group


Cryptocurrency markets have roared to life over the past several hours, as asset-management giant BlackRock has confirmed that it has established a working group to explore cryptocurrencies and blockchain technology.

The news is significant, given that BlackRock is the world’s largest provider of exchange-traded-funds (ETFs). The firm is estimated to have $6.3 trillion USD in assets under management, as of 2017.

In an interview with Financial News, BlackRock CEO Larry Fink elaborated that “we are a big student of blockchain,” before adding that he does not foresee a “huge demand for cryptocurrencies.”

Speaking on Bloomberg TV earlier this year, Isabelle Mateos Y Lago – the chief multi-asset strategist at BlackRock -commented that, at the time, cryptocurrencies did not represent an “investable asset” for BlackRock as yet – before offering that could change as such ecosystems are “evolving very fast”.

Speaking on the news that Japanese cryptocurrency exchange Coincheck was hacked for $534 million USD, Mateos Y Lago quipped that “The fact that interest has persisted despite these repeated hacks… despite regulators waking up and trying to catch up with this new development and gradually weeding out all the illegal uses suggests there really is something to it.”

In the wake of the news, Bitcoin has climbed by some 5.09% day-on-day, and presently trades for $6,701.97 USD. Ethereum and Ripple have seen similar growth at 5.18% and 5.90%, and the second and third largest cryptocurrency by market cap trade at $473.90 USD and $0.471591, respectively.

Related Articles

CBDC adoption: Russia enters final phase to test digital ruble

Russia is in the final phase of testing a central bank digital currency (CBDC), which will be used for both national and international...

What exactly is DeFi? Decentralised finance explained

DeFi is a set of technologies that enables people to manage their funds on a peer-to-peer basis and it's changing the way money can be used.

Expansion: Coinbase will be launching in the Netherlands

As part of its global expansion, Coinbase has announced that it has been granted regulatory approval from the Netherlands' national bank.

Is Bitcoin better than retail estate as an investment?

According to MicroStrategy CEO Michael Saylor, Bitcoin presents a much better long-term asset than property.

See All