BlackRock, Inc. (NYSE: BLK), the world’s largest asset manager, is examining ways it can participate in the cryptocurrency universe, a space CEO Larry Fink has previously bashed.
“The $6.3tn investment powerhouse has created a team from different parts of the business to investigate cryptocurrencies and their underlying infrastructure, blockchain, according to two people familiar with the matter,” reports Financial News.
The report did not say if BlackRock is considering a bitcoin or cryptocurrency exchange traded fund. BlackRock is the parent company of iShares, the world’s largest ETF issuer.
To this point, the SEC has not approved any of issuers’ efforts to launch bitcoin ETFs. Recently, the Winklevoss brothers, the brothers that are looking to introduce the first U.S. bitcoin exchange traded fund, the Winklevoss Bitcoin Trust, were awarded a patent that some believe could help that ETF finally come to life.
Earlier this month, the SEC approved plans for public comments on bitcoin ETFs, which could pave the way for the funds to finally come to life. However, some market observers believe that if the SEC does not approve bitcoin ETFs in the coming months, the effort could be pushed off until 2019 and beyond.
More On BlackRock’s Crypto Moves
“Sources said the team of experts is also looking at what BlackRock’s competitors are doing with cryptocurrencies and how that could impact its business,” according to the Financial News article. “The working group will present its findings to senior management.”
Related: Coinbase Could Add 5 More Cryptos
The number of cryptocurrency hedge funds has grown exponentially over the past few years and BlackRock rivals, such as Fidelity and Goldman Sachs, have waded into the digital currency space. BlackRock has been considering blockchain technologies and related investments for several years, Financial News reports, citing a company spokesperson.
“A recent university study has endorsed Bitcoin as the next level in the evolution of money. Researchers at Imperial College London believe that cryptocurrencies are poised for mass adoption. The study which was sponsored by eToro examined the barriers to trust and mainstream adoption currently being faced by the emerging cryptocurrency movement,” reports Ethereum World News.
One of the biggest problems facing the cryptocurrency space is that, even with bitcoin’s prominence, no digital currencies can be deemed “widely accepted.”
For more information on the cryptocurrency market, visit our Bitcoin category.