Two surprising topics are currently more pressing to BlackRock’s institutional clients than Bitcoin

Institutions have a genuine interest in crypto but not enough to go all in. The continuous Bitcoin purchases from institutions are enough to place one under the impression that interest rates from these firms have hit the roof, but BlackRock’s Larry Fink finds that to be misleading to a large extent.

His reason being that from his firsthand experience, institutional clients are thrilled about cryptocurrencies, but not interested enough to go all the way through.

Institutions Care More About Climate Change, Inflation

Today, with the economic crisis plaguing the world, inflation and cryptocurrencies are frequently mentioned under the same breath, but Fink says that it might be flawed reasoning. Fink tells CNBC’s SquawkBox that from his pool of clients at Blackrock, where $9 trillion in assets are under management, climate change and inflation are the leading topics that institutions are interested in discussing.

Ironically, these days, with the economical crisis plaguing most part of the world, inflation and cryptocurrencies are often mentioned under the same breath, but with Fink saying “Our broad-based client relationships, we’ve had very little interconnectivity on the conversation on crypto other than a fascination,” that reasoning might be flawed.

There are more than a handful of institutions in the United States, and over the past months, just a few have made their way into the cryptocurrency market. “We’re studying it,” he says. One of the reasons Bitcoin is at $64,000 is a result of institutional accumulation. Some of the highest profiled institutions to adopt Bitcoin are Tesla, Morgan Stanley, and Goldman Sachs. It would be inaccurate to deny that more institutions will become crypto-fans in the future, as history has shown that large institutions may have delayed their adoption due to risk management. The price stability of Bitcoin could be the most important factor for others.


Regardless of the length of time and difficulty of bringing their boat to a halt, their patience is paid off time and time again.

Don’t close the books yet, there’s enough room for change

Institutions exhilarated to dabble with cryptocurrencies, but not enough so as to go all-in. It would be easy to assume interest rates have risen so rapidly from institutions due to the continued Bitcoin purchases; however, BlackRock’s Larry Fink finds that to be misleading to a large extent due to institutional clients not being sufficiently interested in cryptocurrency to go the whole way through.

In the past months, we have witnessed that many institutions are unaware of global climate change as well as the associated uncertainty of inflation. This isn't true for every institution, but many are not consciously hunting for a bone. Tesla, Morgan Stanley and Goldman Sachs have been three of the highest profiled institutions to adopt Bitcoin in some form.

Fink said that “our broad-based client relationships have rarely encountered any conversations about cryptocurrency other than a fascination.” While Fink stands to be corrected, he brings his own analysis to the table. “We’re looking into it,” he says. Our business model is solid, but I can't tell you that we're getting broad-based interest from institutions throughout the world. Regardless of what and how long it takes to float their boat, the wait has proven to be worth it time and time again.

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