Hedge funds and asset managers are looking for new opportunities and is an ongoing process. BlackRock is currently exploring options in the Bitcoin and cryptocurrency market.
A Different Tactic by BlackRock
The world’s largest asset manager is always looking to expand. BlackRock manages $6.3 trillion in assets on behalf of its clients. Their holdings span many different industries and companies. Exploring options in the cryptocurrency world makes sense at this time. A working group is being created by BlackRock to take advantage of these volatile markets.
No official commitment has been in this regard. The chief executive of BlackRock blasted Bitcoin not that long ago. This controversial form of money is subject to many different opinions and feelings, especially from those in the world of traditional finance. It is a different type of asset without traditional backing or guarantees. That is also part of Bitcoin’s appeal to hedge funds and asset managers.
One option being explored comes in the form of investing in Bitcoin futures. This investment vehicle has attracted a lot of attention from speculators all over the world. For the working group, this process marks a turnaround for BlackRock. Any option to attract more investors should be looked into. Cryptocurrencies are no exception in this regard.
Institutional Investors Show a Healthy Appetite
Dozens of hedge funds have jumped on the Bitcoin bandwagon over the past 18 months. Asset managers are now taking a very similar approach. All of these developments will ultimately attract more institutional investors. That can lead to an influx of fresh capital hitting all cryptocurrency markets.
BlackRock is the latest firm in a growing list to explore options in the Bitcoin world. Many service providers blasted cryptocurrency at first. Years later, they changed their tune to accommodate exposure to these volatile currencies. It is another example of how Bitcoin is maturing as an industry.
The BlackRock working group has no strict timeline to render its decision. They may pass up on the opportunity in the long run, depending on their internal research. Banks and other centralized financial institutions can no longer afford to ignore Bitcoin and altcoins. This latest development is another example of how the situation is changing rather quickly.
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