Bitcoin is up $250 per coin since the news broke. Blackrock is the world’s biggest asset management firm, and if the firm would get into bitcoin it would give the cryptocurrency the legitimacy it has been lacking in the eyes of traditional investors–meaning the currency could skyrocket.
Financial News broke the story that Blackrock has set up an internal working group into bitcoin to investigate its worth for the company to get involved with it. While the news is sure to make cryptocurrency believers happy, its also a complete surprise, as just last October Mark Wiedman, global head of iShares and index investments at Blackrock, expressed doubt about bitcoin, saying:
I don’t quite get the point of a bitcoin ETF in any case, because we’re talking about . . . trading products that are difficult to access. If bitcoin is ever successful–and again not my thing but–I wouldn’t recommend it. But if it were [successful], why would you need an ETF to access it?
It now looks like that opinion is old news.