How BlackRock transitioned from crypto skeptic to industry leader

From Bitcoin being “an index of money laundering” to a “flight to quality”, BlackRock drastically changed its tone against crypto assets in the last few years.

BlackRock is the world’s largest asset management firm, overseeing trillions of dollars in assets. Founded in 1988, the firm provides a range of financial services including investment management, risk management, and advisory services for institutional and retail clients worldwide.

As a major global player in the financial industry, BlackRock’s decisions and strategies can have a significant impact on financial markets. Their position allows them to influence the direction of investment trends, making their perspectives on emerging asset classes, like cryptocurrencies, particularly newsworthy and influential.

Let’s have a look year by year and see how they changed their ideas.

BlackRock into the crypto market: step by step towards the Bitcoin spot ETF filling

You’ve probably already heard: BlackRock, the world’s largest asset manager, has applied for a Bitcoin and an Ethereum Spot ETF. This development is very bullish for crypto prices and will bring a lot of new people into the industry. However, it wasn’t always like this. 

Leveraging CryptoExplorer AI as our research tool, we’ve put together a summary below of how BlackRock and its CEO’s views have changed over the years.

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2017 – “Initial Skepticism”:

• October 3: Larry Fink, CEO of BlackRock, mentions on Bloomberg TV that he’s “a big believer” in cryptocurrency. However, he expresses concerns about the market being filled with speculation.
• October 13: Fink remarks in a CNBC interview that Bitcoin is “an index of money laundering” and draws a parallel between the crypto hype and the Dutch tulip bulb mania of the 1600s.

2018 – “Caution and Legitimacy”:

• July 16: Fink states that BlackRock’s clients aren’t interested in buying crypto and emphasizes the need for the sector to exhibit legitimacy and transparency.

2019 – “Digital Shift Begins”:

• April 3: Robbie Mitchnick, previously from Ripple, is appointed by BlackRock as the head of digital assets.
• July 19: Emphasizing the necessity for an efficient cross-border payment system, Fink mentions on CNBC that while a new international currency might not be required, there is a pressing need to reduce the fees for cross-currency transactions.

2020 – “Crypto Acceptance”:

• November 20: Rick Rieder, BlackRock’s chief investment officer of fixed income, mentions on CNBC that crypto is “here to stay.”
• December 1: Amid a surge in Bitcoin’s price, Fink warns about Bitcoin possibly diminishing the significance of the dollar and raises the question of Bitcoin’s potential to become a global market.

2021 – “Cautious Observation”

• January 27: In a Bloomberg Live interview, Fink says they’re observing the Bitcoin scenario but it hasn’t “been proven yet.”
• October 13: Expressing his views on CNBC, Fink leans “more in the Jamie Dimon camp”, alluding to the JPMorgan CEO’s bearish perspective on Bitcoin.

2022 – “Active Engagement”

• February 9: CoinDesk reports that BlackRock plans to introduce cryptocurrency trading on its Aladdin platform.
• March 24: Fink’s letter to investors states that Russia’s invasion of Ukraine might speed up digital currencies’ adoption.
• August 4: BlackRock and Coinbase form a partnership to present crypto trading services on the Aladdin platform.
• August 11: BlackRock announces a spot Bitcoin trust tailored for institutional investors.
• November 30: At a New York Times Dealbook event, Fink unveils BlackRock’s $24 million investment in the failed crypto exchange, FTX, and hints at possible misbehaviours with grave repercussions. In the same event, he mentions the potential tokenization of securities in the future markets.

2023 – “Crypto Embrace and Capitalize”

• June 15: BlackRock lodges a filing for a Bitcoin spot ETF with the SEC for its BlackRock’s iShares Bitcoin Trust.
• July 5: Fink tells Fox Business that BlackRock aims to “democratise” crypto and foresees crypto overshadowing global currencies in 2023.
• October 16: Fink, in another Fox Business appearance, attributes a rally to a “flight to quality” amid global tensions and confirms increased interest in crypto from BlackRock clients.

Summary & Outlook

Observing Larry Fink‘s evolving perspective on cryptocurrency over the years is fascinating. This shift appears to be influenced by financial considerations and is positively impacting the crypto industry. 

At CryptoExplorer, we maintain an optimistic outlook for 2024. The potential approval of an ETF, coupled with the anticipated Bitcoin halving, sets the stage for significant developments. 

Additionally, the possibility of increased monetary stimulus in response to rising debt levels and ongoing global conflicts could further influence the market dynamics.

If you don’t want to miss any of these updates and want to use them to make more money, you should visit InvestmentExplorer, CryptoExplorer’s community for crypto enthusiasts. There, the co-founder of CryptoExplorer, Stefan Erben, will help you become a better crypto investor!

Given these factors, the year 2024 is shaping up to be a pivotal period in the cryptocurrency world.

What are your thoughts on the outlook for 2024 in the crypto space? Share your views with us!