CEO of $10 Trillion Asset Manager Predicts That Most Crypto Companies Will Fail

BlackRock CEO Larry Fink has predicted that the majority of cryptocurrency companies will fail during his recent appearance at the New York Times DealBook Summit. 

Fink also revealed that the world’s largest asset manager invested $24 million into the embattled FTX exchange. BlackRock marked that sum down to zero following the collapse of the exchange.

When asked about the FTX debacle, Fink refused to speculate about whether or not BlackRock was misled by the failed crypto exchange. “Could we have been misled? Until we have more facts, I will not speculate,” he said. 

Speaking of the state of the economy, Fink predicted that inflation would drop, but interest rates will remain high. 

In 2020, Fink said that Bitcoin could evolve into a global market after criticizing the cryptocurrency in the past.   

Earlier this year, Salim Ramji, global head of ETFs and index investments at investment titan BlackRock, said that the company was bullish on blockchain since the technology has the potential to make financial markets more efficient.  

In August, BlackRock partnered with Coinbase’s brokerage arm in order to boost its crypto offering. 

The world’s biggest asset manager has also participated in a $400 million funding round of cryptocurrency firm Circle.