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BlackRock Warns of “Complete Losses” for Cryptocurrency Investors

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BlackRock have released their most recent weekly commentary, in which the key point is perhaps the phrase “Cautious on Bitcoin, Bullish on Blockchain”. However, many will be drawn to their most recent warning; don’t get involved in cryptocurrency investment unless you can afford to lose everything.

Richard Turnill, the Global Chief Investment Strategist for BlackRock, is no stranger to Bitcoin-bashing, having previously called it a bubble. His stance may have softened somewhat over time, but the message is still to exercise caution. With regards to blockchain, while acknowledging the enormous potential that it has, he has also stressed that mass adoption will not be smooth and seamless, as there will be significant regulatory hurdles to overcome.

The main features of the commentary were summarized in three bullet points:

  • Cryptocurrencies could gain wider appeal over time, but we see them as far from earning a place in mainstream investment portfolios for now.
  • The Federal Reserve expressed greater confidence in both its growth forecast and inflation outlook, sending U.S. government bond yields up.
  • Germany’s Social Democrats are expected to approve a coalition government, despite rising chances of a no vote. Italy goes to the polls.

Source: https://www.blackrock.com/investing/insights/weekly-commentary

Mixed Messages?

However, there doesn’t seem to be a “party line” at senior executive level within BlackRock. Only a few months ago in fact, Larry Fink, the BlackRock CEO was quoted as saying that he was a “big believer” in crypto. Perhaps this most recent update from Turnill, then, is the start of a re-positioning within the company that will see even softer stances taken up in the coming months.

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