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Decrypting Blackrock’s Bitcoin move

Photo of: Nathan VDH
by Nathan VDH
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With its booming course, Bitcoin has been the talk of the town in recent months. Many investors are wondering if it’s time to bet on this crypto. This is why the movements of the major players in the field are under close scrutiny. BlackRock is one of the big names in investment that are being watched closely. Precisely, the group has just taken a further step towards investing in crypto. Back on this announcement which will not go unnoticed!

BlackRock is a giant when it comes to investment funds. In fact, it is even the most significant investment fund in the world with more than 8.7 trillion dollars under management! Although originally American, BlackRock is now known in many countries.

With such international coverage and unparalleled fund management, BlackRock is closely followed by investors. However, BlackRock has just announced that the group is now allowing its fund managers to incorporate Bitcoin and other cryptocurrencies into their portfolios.

The investment in Bitcoin and cryptocurrencies will be closely monitored. For example, funds will not be allowed to own Bitcoins themselves. In addition, crypto trading activities will only take place on the Chicago Mercantile Exchange (CME) market. However, this is a significant first step that BlackRock has just taken. This position, like the movements initiated by PayPal, could snowball. Thus, other institutional investors still reluctant to invest in Bitcoin could also take the step in front of its growing legitimacy.

The BlackRock announcement is interesting because it shows a change in policy. Not long ago, in 2018, BlackRock CEO Larry Fink claimed that the group was not interested in buying cryptocurrencies at all.

The position quickly changed over the years. By 2020, BlackRock, through its Chief Investment Officer, had opened the door to cryptos. Rick Rieder recognized that there was a strong demand for Bitcoin. Rieder even said that Bitcoin “will be an investment asset for a long time to come. Then in November 2020, Rieder went one step further and compared Bitcoin to gold.

The legitimacy of Bitcoin is becoming more and more important
BlackRock’s position joins that of many other significant financial players who have evolved on the issue of cryptos. For example, recently, we learned that after ignoring cryptos, Wall Street traders were beginning to take a serious look at them. Another example also comes from JP Morgan, another renowned investor. Recently, the JP Morgan group published a series of positive announcements regarding Bitcoin and cryptocurrencies.