BlackRock has no plans to launch a bitcoin product, but is positive about the blockchain technology that underpins cryptocurrencies, according to one of the top leaders.
“As for the underlying technology of blockchain, it’s incredibly innovative and incredibly disruptive,” said Salim Ramji, global head of iShares and BlackRock Index Investments. Financial news during a Barron’s Live event on June 22nd. “It takes out frictions, it enables easier transfer of value in ways that make the underlying piping of markets much more efficient for customers.”
Ramji’s optimistic outlook for investments focused on blockchain comes after he told it UN in December that the asset manager had “no current plans” to launch crypto-ETFs, despite registrations from other firms to get bitcoin products approved by the US regulator.
One of the reasons Ramji mentioned then for holding back was the “incredibly opaque” regulations around cryptocurrencies.
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Ramji told Barron’s Live event: “We will only do so if it can meet the levels of market quality that our customers expect of us and our regulators expect of us.”
However, the world’s largest asset manager does not rule out a bitcoin game at some point.
“The whole story of iShares has been about making investing more accessible and affordable. I think there will be a time that can also apply to cryptocurrencies, but we will always look at the long-term view, as opposed to the short-term trade around when that timing is correct, said Ramji.
“We continue to study and look at the cryptocurrencies themselves, including bitcoin, around: there are ways to make it easier and more accessible to investors – just as we have done with the bond market, the gold market and other markets around the world.”
In April, BlackRock rolled out its Blockchain and Tech ETF, which gives investors broad access to companies involved in blockchain technology. ETF, which has a portfolio of 33 companies, invests in Coinbase, Riot Blockchain and Galaxy Digital.
Despite a lack of desire to launch products that offer direct exposure to bitcoin and other cryptocurrencies, BlackRock emerged in April as an investor behind a $ 400 million fundraising round or Circle Internet Financial – a crypto-focused company that manages stablecoin USD Coin. It is the second largest stable currency, with around $ 56 billion in circulation, according to CoinMarketCap.
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Other investors who support Circle, which plans to be listed later this year through a special purpose acquisition company, include Fidelity, Marshall Wace and Fin Capital.
BlackRock entered into a broader strategic partnership with Circle, which includes exploring capital market applications for USD Coin.
Ramji said that the partnership had “done quite well, despite the fact that many other not entirely stable coins have gone through the problems they have gone through”.
“We continue to look at different pilots and different mechanisms for how to experiment with tokenization technologies,” he added.
To contact the author of this story with feedback or news, send an email to David Ricketts
