BlackRock Warns Users of Crypto Investing Risks

American global investment management corporation stated that the nature of cryptocurrencies makes them tricky investment targets
27 February 2018   1531

BlackRock is an American global investment management corporation based in New York City, and one the world's largest asset managers guiding individuals, financial professionals and institutions in building financial futures.

On February 26, BlackRock has released a global weekly commentary entilted "Sizing up the crypto craze", elaborating on such key points as:

  • Cryptocurrencies could gain wider appeal over time, but we see them as far from earning a place in mainstream investment portfolios for now
  • The Federal Reserve expressed greater confidence in both its growth forecast and inflation outlook, sending U.S. government bond yields up
  • Germany’s Social Democrats are expected to approve a coalition government, despite rising chances of a no vote, Italy goes to the polls

The report was presented by Richard Turnill. On the one hand, the study states that cyptocurrencies are gaining wide populary and becoming mainstream nowadays, but, on the other hand, crypto markets are highly volatile, fragmented, largely unregulated, and come with unique liquidity and operational risks.

The volatility of the cryptocurrencies makes the gyrations in the U.S. equity market during the global financial crisis almost look placid.
 

Richard Turnill

Global Chief Investment Strategist, BlackRock 

The study claimed that blockchain and cryptocurrencies surely have the bright future in front of them, but they still remain risky in terms of investment, and for now only "those who can stomach potentially complete losses" can consider investing in crypto. Moreover, blockchain technology needs to develop much more and undergo significant changes to be able to reach the heights many believe it is really capable of reaching.

Bitwise to Withdraw Bitcoin ETF Application

The application was filled a year ago, company met with regulator 8 times and prepared more than 500 pages of documents
15 January 2020   135

Bitwise Asset Management, a digital asset management company, has withdrawn an application to launch a Bitcoin-linked exchange-traded fund (ETF).

On Tuesday, Bitwise sent a notice to the US Securities and Exchange Commission (SEC), where it announced that it had made such a decision "in the public interest and investor protection."

We did indeed withdraw the application. This is a procedural step, and we intend to refile our application at an appropriate time.

 

Matt Hougan

Global head of research at Bitwise

He also noted that his firm is currently “working hard” to answer the SEC questions in the 112-page commentary on the initial application.

We remain fully committed to the development of a bitcoin ETF.

 

Matt Hougan

Global head of research at Bitwise

Bitwise has applied for the launch of the Bitcoin ETF in January 2019. Since then, the company met with the regulator eight times and prepared 500 pages of documentation with arguments in favor of approving its proposal.