‘The Next Generation’—BlackRock CEO Reveals $8 Trillion Fund’s Huge Crypto Prediction After Bitcoin and Ethereum Price Crash
Bitcoin
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The bitcoin price has crashed by around 70% since the end of last year, plunging below $17,000 per bitcoin and dragging down the ethereum price and raising fears that the entire crypto market could be headed for oblivion.
Now CEO of BlackRock
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Bitcoin, ethereum and other cryptocurrencies remain well below the highs they hit of late … [+]
“I think the next generation for markets, the next generation for securities, will be the tokenization of securities,” BlackRock’s Larry Fink, who has previously expressed skepticism about crypto, said on stage at New York Times
Bitcoin and crypto’s blockchain technology allows traditional assets to be “tokenized” on a public ledger, potentially making the transfer of everything from stocks, bonds, real estate and alternative investments like art cheaper and easier.
“I actually think this technology is going to be very important,” Fink said. “Think of instant settlement [of] bonds and stocks, no middlemen, we’re going to reduce fees even more dramatically. Think about it. It changes the whole ecosystem.”
However, Fink warned that many of today’s biggest cryptocurrencies and crypto companies will not survive, pointing to the collapsed FTX crypto exchange as going against “the whole foundation of what crypto is.”
FTX’s reliance on its FTT exchange cryptocurrency, used as loan collateral, played a role in the implosion after the price of FTT suffered a sharp decline.
“I actually think most of the companies are not going to exist,” Fink said. BlackRock indirectly invested around $24 million in FTX. However, it was not in the “core part” of BlackRock’s business, according to Fink.
In September, BlackRock launched a blockchain company exchange-traded fund (ETF), giving investors exposure to 35 different companies.
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Bitcoin price has crashed from its all-time high of nearly $70,000 per bitcoin last year, with … [+]
Meanwhile, bitcoin, ethereum and crypto price watchers are trying to gauge market sentiment after two major earthquakes from the Federal Reserve this week.
“The string of key economic data released this week so far has sent a mixed signal and bitcoin lost direction after regaining $17,000 per bitcoin on Wednesday,” Yuya Hasegawa, crypto market analyst at Bitbank, said in an email.
“Surprisingly, bitcoin is on track to test the lower bound of the June-to-October range from which the price broke down due to the FTX shock last month. It is not likely that the price will easily recover that $17,600 level. “
