BlackRock Inc, the largest asset manager in the world, has confirmed a $1.7 trillion loss in the first half of 2022 as rife inflation and recession eat through financial markets.
BlackRock Loses $1.7 Trillion in 6 Months
On the back of tremendous success, becoming the first firm to hit $10 trillion under management (in Q4 2021), BlackRock has revealed outrageous losses for the first six months of 2022.
BlackRock reported that its assets under management have fallen 11% in 2022. According to the asset management firm, it has lost $1.7 trillion and now manages $8.49 trillion.
On his last earning call, chairman and CEO of BlackRock Larry Fink explained that “2022 ranks as the worst start in 50 years for both stocks and bonds.” As a result, retail investors withdrew $10 billion from BlackRock in Q2.
BlackRock Remains Bullish on Bitcoin But Stays Away
Despite the influx of institutional investors and large banks into the crypto scene, BlackRock has stayed away from Bitcoin but welcomed blockchain innovation.
In April, BlackRock launched a Blockchain and Tech ETF, giving investors exposure to 33 blockchain companies, including Coinbase (NASDAQ:COIN), Riot Blockchain (NASDAQ:RIOT), and Galaxy Digital.
Last month, Salim Ramji, global head of iShares and index investments at BlackRock, said that the asset manager was waiting for “the right time” to launch a crypto product.
Edward Dowd, a former Blackrock (NYSE:BLK) Executive and investment adviser, have remained bullish on the future of Bitcoin, insisting it ‘will be part of everyone’s portfolio.
On the Flipside
- While BlackRock stays away, BNP Paribas (OTC:BNPQY), the second-largest private bank in the Eurozone with over $13 trillion under management, is preparing to launch crypto custody.
Why You Should Care
BlackRock’s losses are a combination of recession, inflation, rising interest rates, and poor performance of stocks and bonds in the first half of 2022.