Sat 13 April 2024 ▪
3
min reading ▪ acc
Against the backdrop of genuine asset euphoria, US asset management stalwart BlackRock has defied all stock market forecasts to post stratospheric profits in the first quarter of 2024. However, this exceptional performance raises questions about the sustainability of this partially crypto-powered success.
The meteoric rise of BlackRock
The beginning of 2024 was marked by a spectacular increase in assets under management in the stock market, which was supported by massive adoption by individual and institutional investors. As a result, BlackRock, as the undisputed leader in the field, benefited greatly from this unprecedented enthusiasm. Cryptocurrency-related assets under management, which now represent a significant portion of the New York firm’s overall portfolio, have contributed to this success.
Breathtaking results of the 1st quarter on the stock market
The data BlackRock released this Friday is breathtaking. With net income of $1.57 billion, a staggering 36% increase in the stock market compared to the same period in 2023, the asset manager blew away analysts’ expectations. Additionally, revenue rose 11.55% to $4.73 billion. Although Larry Fink, CEO of BlackRock, did not specify the exact contribution of cryptocurrencies, he highlighted the “acceleration” of asset growth, which indicates the positive impact of these new digital asset classes.
Despite these exceptional results, many experts question the sustainability of this economic model based in part on cryptocurrencies. Indeed, the volatility inherent in these digital assets raises concerns about the stability of BlackRock’s earnings over the long term. Regulators are also gradually increasing their oversight of the crypto sector, which could limit institutional investors’ appetite for these highly speculative assets.
Finally, BlackRock’s stunning quarterly results highlight the significant impact cryptocurrencies are having on the stock market asset management industry. However, this reliance on digital assets raises legitimate questions about the sustainability of this economic model. BlackRock will therefore have to strike a delicate balance between capitalizing on the current crypto euphoria and protecting against the risks inherent in these assets.
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The world is evolving and adaptation is the best weapon to survive in this wavy universe. Essentially a crypto community manager, I am interested in anything directly or indirectly related to blockchain and its derivatives. To share my experiences and raise awareness of a field that fascinates me, there is nothing better than writing articles that are both informative and relaxing.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.