According to Edward Dowd, former managing director at BlackRock, bitcoin will be a much more stable asset once the bear market is over, he also described it as “the Amazon of the crypto era” and predicts that it will hold a spot in everyone’s portfolio in the future. Edward Dowd forecasted that bitcoin would occupy a spot in everyone’s portfolio one day, but he didn’t reveal whether he had already distributed some of his wealth in Bitcoin.
“bitcoin will become a better financial instrument than gold and everyone will have it in their portfolio”
Fink was nowhere near that supportive of the digital asset universe back in the days. In 2017, he described BTC as an “index of money laundering,” while in 2020, he argued that the advancement of the cryptocurrency could undermine the dominance of the US dollar as the world’s reserve currency.
“Bitcoin has the capability of becoming a greater asset than Gold because of how it’s built. Bitcoin can be used to make transactions digitally, it is decentralized and has transparency. On the other hand, Gold is hard to move and store, making it difficult to do transactions with, and it is definitely not decentralized. This doesn’t mean that Gold will go away, it’s just that Bitcoin will become an even more popular investment option as compared to Gold. Even now, having some of your money in Gold is also not a bad investment”
It is obvious that biggest financial companies and banks are very interested in crypto, especially in Bitcoin.
BlackRock’s CEO Larry Fink stated his company is looking into digital assets / cryptocurrencies and their underlying technologies, earlier this year in mid April.
In early April, the global fintech firm Circle (that issues USDC stablecoins) raised $400 millions and one of the investment giants was BlackRock. The world’s largest asset manager joined forces with Circle to explore applications for USDC in capital markets.
Commenting on the collaboration was Jeremy Allaire – CEO of the fintech organization:
“Dollar digital currencies like USDC are fueling a global economic transformation, and Circle’s technology infrastructure sits at the center of that change. It’s particularly gratifying to add BlackRock as a strategic investor in the company. We look forward to developing our partnership.”
Last week BlackRock and the crypto exchange Coinbase have partnered to broaden access to crypto among institutional investors. BlackRock has $8.5 trillion in assets under management as of the second quartal of 2022, while Aladdin has more than 200 institutional users, including insurers, pensions, corporations, asset managers, banks and official institutions. Following this news the Shares of Coinbase jumped, while those of BlackRock were slightly up.