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.
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.