The CEO of Blackrock, the world’s largest asset manager, says that most crypto companies will not be around following the collapse of crypto exchange FTX. However, the executive is still optimistic about blockchain technology.
BlackRock CEO on the Fall of FTX and the Future of Crypto
BlackRock Inc., the world’s largest asset management firm. (NYSE: BLK) CEO Larry Fink talked about cryptocurrencies and collapsed exchange FTX during an interview at the New York Times DealBook Summit last week.
Blackrock had $7.96 trillion in assets under management (AUM) as of the third quarter. The asset management 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’ll have to wait to see how this all plays out… I mean, right now all we can do is make the judgment calls and it looks like mishandling of key results.” Were.” BlackRock’s CEO believes the crypto companies we see today won’t be around:
I actually believe most of the companies are not going to be around.
Despite the problems surrounding FTX, Fink said that blockchain technology is relevant for the future. The Blackrock boss said the technology behind crypto will be “very important”, stressing:
I believe the next generation for markets and next generation for securities will be tokenization of securities.
Crypto exchange FTX filed for Chapter 11 bankruptcy on November 11 and Bankman-Fried stepped down as CEO. The company owes billions of dollars to an estimated one million creditors. Other global asset managers investing in FTX include the Singapore government’s Temasek Holdings, Tiger Global, Sequoia Capital and the Ontario Teachers’ Pension Plan.
The FTX meltdown has many people calling for tighter crypto oversight. Last week, U.S. Treasury Secretary Janet Yellen said crypto doesn’t have adequate regulation. “It’s a Lehman moment within crypto, and crypto is big enough that we’ve had substantial harm with investors,” she said.
