The world’s biggest exchange traded fund (ETF) supplier BlackRock has announced the creation of a working group to evaluate potential association with Bitcoin (BTC), this according to an article carried by Financial News (FN) yesterday on July 16th.
The move shows a U-turn on BlackRock’s earlier critical position towards the cryptocurrency. Following in the strides of Goldman Sachs, the cross-industry working group formed by BlackRock will also focus on whether the company ought to invest into Bitcoin futures, FN reports, citing “two people familiar with the matter.”
In general comments to FN, a representative from BlackRock said the company had been “looking at blockchain for several years” yet the rep did not mention cryptocurrency.
We may recall that Goldman Sachs CEO Lloyd Blankfein had over and again told the media that Bitcoin isn’t for him, before a sudden announcement was made disclosing the bank was taking an interest in cryptos as a result of customers’ requests.
BlackRock could also follow a similar path as did Goldman Sachs. This, in spite of its CEO Larry Fink’s characterization of Bitcoin as “an instrument people use for money laundering” during the cryptocurrency’s price hike late last year.
However, in February this year, the company officially announced that its cryptocurrency choices were “under close review,” while it eyes “wider” use of cryptos in future.
Throughout the weekend, CNBC’s trading consultant Ran Neuner observed that a future influx of institutional investors to Bitcoin would “make 2017” – and its highs – “looks like a warm-up.” All that is required, he stated, is a modest price uptick.
Bitcoin bounced around 4 percent at the beginning of the week in just over two hours, obviously on the bullish news from BlackRock, which was trading around $6,605 at press time.