The Price of Bitcoin surged on Monday 16th after reports indicated that BlackRock had set up a group to explore how to take advantage of the crypto market. Bitcoin which is the world’s largest digital currency moved up by 4 percent to trade at around 6,612 dollars. The price of Ethereum also went up by 5 percent while that of Ripple went up by 4 percent.
A report from London Financial News newspaper indicates that BlackRock has formed a group of experts from different sectors to monitor how cryptocurrency works and also understand the Blockchain technology. The report went on to indicate that the asset management giant is also studying whether it should invest in Bitcoin futures. BlackRock is also to be watching how its competitors are doing in the Crypto markets as well as monitoring their steps towards Blockchain technology.
According to the Company’s spokesperson:
“BlackRock has a dedicated group of experts who are exchanging information about Blockchain technology just like other financial institutions is doing. The group consists of different employees from several parts of the business. We have been researching about Blockchain for many years because of its potential especially in data sharing, reconciliation, clearing as well as simplified securities insurance.”
Information reaching our desk indicate that the working group has been in existence since. This report comes barely a week after reports emerged that Steve Cohen’s firm Cohen Private Ventures has already invested in a cryptocurrency-focused investment fund called Autonomous Partners.
With many institutional investors joining the cryptocurrency markets this will boost the crypto markets as well give other investors’ confidence to join the market which is key for its growth. Cryptocurrency markets have been in existence for 9 years and the markets have been affected by continuous volatility which has led to continuous price swings. In 2017 the price of Bitcoin went close to 20,000 dollars but has since lost more than half of that price.
The speculative nature of digital currencies is giving financial regulators around the world massive concerns. Most of them are also concerned about the possibility of using cryptocurrencies in illicit activities. Countries like China and South Korea have moved to regulate the market with both countries banning Initial Coin Offerings. However, the recent move by BlackRock is good news to crypto investors especially because Larry Fink the current CEO of the company has in previous occasions spoken against digital currencies calling them an Index of Money Laundering.