The world’s largest asset manager, BlackRock is said to have set up a working group to investigate possible ways for it to capitalise on the cryptocurrency market.
According to a Monday report by Financial News, the US investment giant, which has $6.3 trillion in assets under management, has created a team from different parts of the business to investigate cryptocurrencies and their underlying technology, the blockchain. The report cited two unnamed sources, familiar with the matter.
According to one of the sources, the working group, which includes New York multi-asset investment strategist Terry Simpson, will examine whether BlackRock should invest in Bitcoin futures. The group is reportedly also looking at what moves the company’s competitors are making with relation to digital currencies and how this could impact its business.
Responding to a query by Financial News, a BlackRock spokeswoman said that the company has been “looking at blockchain technology for several years”. However, she declined to comment on whether the company had any plans regarding cryptocurrencies.
Nevertheless, the news was celebrated by cryptocurrency supporters on social media, with some pointing out that BlackRock was the latest major financial institution to have shown interest in the sector. In May, US banking giant JP Morgan Chase moved the head of its fintech partnership programme to a new role as head of crypto assets strategy, while Goldman Sachs hired its first crypto trader.
The news triggered a big upswing on the cryptocurrency market, that saw most major coins rising to multiple-day highs. The No. digital currency, Bitcoin (BTC) hit a six-day high above $6,600, after trading below $6,400 for the better part of the morning session.
As of 15:58 BST, the Bitcoin price was at $6,628.43, up 4% from the same time yesterday. For further information on how to buy and trade Bitcoin, see our comprehensive Bitcoin guide.