News from BlackRock has sent the crypto market up today after a poor end to the week, marked by declines towards $6,000 for bitcoin after pushing hopefully above $6,800 late last week. Bitcoin is 4% higher at $6,621.
The sharp move higher this morning follows a press report that BlackRock is looking at ways to get into the crypto asset class.
BlackRock is one of the world’s largest fund managers with $6.2 trillion of assets under management.
Chief executive Larry Fink has previously written off crypto as speculative and for money laundering but the London-based Financial News has revealed that BlackRock is looking at how to work crypto into its business model and to assess the progress being made by competitors. BlackRock has not officially confirmed the report.
Goldman Sachs is setting up a crypto trading desk according to reports and JPMorgan also has plans afoot in the space.
No US investment bank or asset manager has as yet publicly admitted to buying crypto directly or the new bitcoin futures products from CME and Cboe.
A blog post from Coinbase just before the weekend saying the US exchange was planning to add a clutch of new coins to its markets has also helped sentiment, particularly so for the coins mentioned. The coins in the frame are:
- Cardano (ADA)
- Basic Attention Token (BAT)
- Stellar Lumens (XLM)
- Zcash (ZEC)
- 0x (ZRX)
In other news, the Financial Stability Board of the G20 has published a framework for the regulation of crypto assets. The board states:
“While the FSB believes that crypto-assets do not pose a material risk to global financial stability at this time it recognizes the need for vigilant monitoring in light of the speed of market developments.”
Finally, on Sunday the Financial Times reported that the Hong Kong Monetary Authority (HKMA) is implementing a blockchain solution for international trade, with 21 banks involved. The project aims to reduce the costs associated with paper-based processes and improve security. It will go live next month. The HKMA is effectively Hong Kong’s central bank and this would be a first by such an important cog in the wheel of the global economy and its governing institutions.