BlackRock Exec Constantly Asked About Cryptos; Fund Still Won’t Touch Them
Exec from the world’s largest fund speaks against cryptos.
The chief multi-asset strategist at BlackRock, the world’s largest fund, said that someone asks her about Bitcoin at least once a week.
This exec is Isabelle Mateos y Lago and she said that despite the clear interest in Bitcoin by clients, the fund doesn’t see Bitcoin as an investable asset class.
In an interview with Bloomberg this week, she said that there is an enormous amount of interest, and that it was mostly coming from institutional clients. Still, she said the fund wouldn’t get in on the crypto action at this time.
“The interest is not just in Bitcoin, but also in cryptocurrencies and Blockchain. We’re not advising anyone to put their money in it unless they are willing to lose their entire stake.”
Her comments come as Bitcoin continues to shave all the gains it’s made since December when it briefly rose to just under $20,000. Now, the crypto is struggling to even maintain $10,000 or more. In fact, on Thursday, it briefly dipped below $9,000. Its performance has naturally dragged down the prices of other cryptos, too.
y Lago listed a number issues as to why the fund didn’t view the space as investable now. These include safety issues, liquidity issues, and regulatory issues.
While BlackRock doesn’t see cryptos as an investable asset class at this stage, y Lago did acknowledge why there was so much craze around it.
“It’s new. It’s interesting. The fact that interest has persisted, despite the repeated hacks, and despite regulators waking up and trying to catch up with it and gradually weed out all the illegal uses, suggests maybe there is something to it. It’s evolving very fast. We are keeping it under close review.”
When asked if the G20 stepped in with regulations would be enough for BlackRock to jump into the space, she said:
“It won’t change everything overnight, but it will be another step toward maturity for this asset class. There are lots of ways to get in, but are they safe? It’s still the wild wild west.”