BlackRock’s Fink Says Crypto Tech Is Still Relevant Despite FTX
NEW YORK, November 30 (Reuters) – BlackRock Inc. (BLK.N) Chief Executive Larry Fink said on Wednesday that there appears to have been some “misbehaviour” from now-bankrupt crypto exchange FTX, but the technology behind the crypto is relevant going forward.
“We’re going to have to wait and see how this all pans out (with FTX),” Fink said. “I mean, right now we can make all the judgment calls and it looks like there has been some misconduct with major consequences.”
He made the comments at an event hosted by The New York Times DealBook, adding that he believes most crypto businesses “won’t be around” in the future.
FTX filed for Chapter 11 bankruptcy in the United States on Nov. 11 following its precipitous collapse, saying it may owe money to more than a million creditors.
BlackRock invested $24 million in FTX through a billionaire fund it manages, he said. Other global asset managers such as Temasek Holdings, venture capital fund Tiger Global and Sequoia Capital have also invested in Sam Bankman-Fried’s FTX.
Despite all the issues around FTX, Fink said he considers the technology behind the crypto “will be very important.” He added, “I think the next generation of markets and the next generation of securities will be the tokenization of securities.”
Earlier Wednesday, US Treasury Secretary Janet Yellen said she remains skeptical of cryptocurrencies and called for regulation.
Fink painted a gloomy picture of the economy, citing higher than usual inflation, high interest rates and weaker growth, and limited room for fiscal stimulus.
“We are actually going into a period of more what I would call a malaise,” he said. “We’re just not going to have the real-growth economy that we’ve been used to.”
Still, he believes the environment for investments is more favorable, especially in investments that rise with interest rates.
Reporting by Carolina Mandl in New York Editing by Matthew Lewis
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