BlackRock Chief Executive Larry Fink said on Wednesday it is studying cryptocurrencies like bitcoin to determine whether the asset class could offer countercyclical benefits.
In response to a shareholder asking whether the company would invest in bitcoin, Fink told its annual meeting: “The firm has monitored the evolution of crypto assets. We are studying what it means, the infrastructure, the regulatory landscape.”
BlackRock, the world’s largest asset manager running roughly $9 trillion, is a long-term investor, Fink said. And crypto currencies could potentially play a role in long-term investing as an asset class similar to gold.
For now, it is too early to determine whether cryptocurrencies are “just a speculative trading tool” he said. He also noted that broker dealers are the ones making the most money from the volatility of many cryptocurrencies and their wide bid-ask spreads.
Earlier in the meeting, BlackRock said all of its 16 director nominees were elected with a majority of shareholder votes cast. It also said that executive pay had been backed by 93% of shareholder votes.
A shareholder resolution to convert the company into a public benefit corporation - with the aim of putting all stakeholders on equal footing with shareholders - was rejected, receiving only 2.3% of the vote. The vote was in line with what similar proposals have received this year at other big U.S. companies and financial firms.
Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.