The CEO of Blackrock, the world’s largest asset manager, says most crypto companies will be gone after the collapse of the FTX crypto-currency exchange. However, the executive remains optimistic about blockchain technology.
Blackrock’s CEO on the FTX collapse and the future of crypto.
Larry Fink, the CEO of Blackrock , the world’s largest asset management firm, spoke about crypto-currencies and the collapse of the FTX exchange during an interview at the New York Times Dealbook Summit last week.
Blackrock had $7.96 trillion in assets under management (AUM) in the third quarter. The asset management firm invested $24 million in Sam Bankman-Fried’s (SBF) FTX through a billionaire fund it manages, the CEO said.
Regarding the FTX collapse, Fink said, “We’re going to have to wait and see how this all plays out…I mean, right now we can make all the judgment calls and it looks like there was some bad behavior with major consequences.“Blackrock’s managing director believes that most of the crypto-currency companies we see today will not be around, stating:
I actually think most of the companies won’t be there.
Despite the problems surrounding FTX, Fink said blockchain technology is relevant to the future. Pointing out that the technology behind the crypto “will be very important“, Blackrock’s boss opined:
I think the next generation for markets and the next generation for securities will be tokenization of securities.
Crypto-currency exchange FTX filed for Chapter 11 bankruptcy on Nov. 11 and Bankman-Fried stepped down as CEO. The company owes billions of dollars to about a million creditors. Other global asset managers invested in FTX, including Singapore government’s Temasek Holdings, Tiger Global, Sequoia Capital and Ontario Teachers’ Pension Plan.
The FTX collapse has prompted many to call for stricter oversight of crypto-currencies. Last week, U.S. Treasury Secretary Janet Yellen said that crypto lacks adequate regulation. “This is a Lehman moment within crypto, and crypto is important enough that we have had substantial damage with investors “, she stated.