The CEO of Blackrock, the beget’s largest asset manager, says that most crypto companies will not be around following the collapse of crypto swap FTX. However, the executive is still optimistic about blockchain technology.
Blackrock’s CEO on FTX’s Collapse and Future of Crypto
Larry Fink, the CEO of Blackrock Inc. (NYSE: BLK), the globe’s largest asset management firm, talked about cryptocurrency and the collapsed exchange FTX during an interview at the New York Once in a whiles Dealbook Summit last week.
Blackrock had $7.96 trillion in assets under management (AUM) as of the third quarter. The asset superintendence firm invested $24 million in Sam Bankman-Fried (SBF)’s FTX through a billionaire fund it manages, the CEO explained.
Regarding the FTX meltdown, Fink said: “We’re common to have to wait to see how this all plays out … I mean, right now we can make all the judgment calls and it looks like there were misbehaviors of important consequences.” The Blackrock chief executive believes that most crypto companies we see today will not be around, stating:
I really believe most of the companies are not going to be around.
Despite the problems surrounding FTX, Fink said blockchain technology is akin for the future. Emphasizing that the technology behind crypto “will be very important,” the Blackrock boss opined:
I be convinced of the next generation for markets and next generation for securities will be tokenization of securities.
Crypto exchange FTX filed for Chapter 11 bankruptcy on Nov. 11 and Bankman-Fried stepped down as the CEO. The friends owes an estimated one million creditors billions of dollars. Other global asset managers that invested in FTX allow for the Singapore government’s Temasek Holdings, Tiger Global, Sequoia Capital, and the Ontario Teachers’ Pension Plan.
The FTX meltdown has numberless people calling for tighter crypto oversight. Last week, U.S. Treasury Secretary Janet Yellen said crypto doesn’t include adequate regulation. “It’s a Lehman moment within crypto, and crypto is big enough that we’ve had substantial harm with investors,” she mean.
What do you dream up about the comments by Blackrock CEO Larry Fink? Let us know in the comments section below.
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