World’s largest asset manager is studying more about cryptocurrencies and blockchain

With an aim to explore how to profit from the growing cryptocurrency ecosystem, BlackRock, the world’s largest exchange-traded fund (ETF) provider, has set up a working group to understand more about cryptocurrencies and blockchain. The group will examine how its competitors are investing in the cryptocurrency industry and they would also monitor whether there is any potential threat to the company's share because of these cryptocurrency firms.

According to a report by CCN, it is rumoured that the study team will report to a senior management team, which will include the company's CEO Larry Fink. A BlackRock spokesperson said: "The firm has been looking at blockchain technology for several years." While talking about his company's involvement in the cryptocurrency and blockchain sector, Mr Fink said, "They are a big student of the blockchain." Fink also stressed that even though the firm has begun investigating cryptocurrencies more closely, he doesn’t see “huge demand for cryptocurrencies.”

Apparently, nearly $6.3 trillion asset managers are exploring other ways to gain exposure to cryptocurrencies and blockchain technology, discussing the scope of investments in bitcoin and other cryptocurrencies. Reports suggest that a number of ETF providers have sought to create and list the first bitcoin ETF on a regulated stock exchange. Unfortunately, none of the companies had any success in their attempts so far.

Following the publication of the report, the bitcoin price saw a moderate recovery in its price. It mounted four percent to $6,609 over its previous-day level. On Sunday the cryptocurrency market cap was raised to $266.6 billion, up from $254.2 billion.