BlackRock is the largest asset management company in the world and is very prominent in the investment world today. The multinational investment company is headquartered in New York City, United States.
BlackRock is known for implementing sustainability principles and focusing on transitioning to low-carbon energy. Larry Fink serves as Chairman and CEO of BlackRock and controls the company’s ownership.
To know more about BlackRock and its history, global presence, services, and impact on the financial industry, check out the full review below!
What is BlackRock & Its History
Quoting id.wikipedia.org, BlackRock is one of the world’s leading companies providing investment, advisory, and risk management solutions. Larry Fink, who serves as Chairman and CEO of BlackRock, has control over the company.
Historically, BlackRock’s journey began in 1998 with just eight team members. The founders were committed to managing client assets by leveraging their deep understanding of finance and risk.
In 1999, BlackRock introduced its property technology, Aladdin, which soon became the core of the company’s identity. Aladdin permeates every aspect of the company’s activities, differentiating BlackRock as an investment and risk manager.
On October 1 of the same year, BlackRock made its Initial Public Offering (IPO) on the New York Stock Exchange at USD14 per share. By the end of that year, the company managed USD165,000,000,000 worth of assets and established increasingly strong partnerships with global institutions.
A significant step was taken in 2000 with the formation of BlackRock Solutions, which took Aladdin as its business foundation. This marked the beginning of BlackRock’s role as a technology provider.
As for 2006, BlackRock embarked on a series of acquisitions, starting with acquiring Merrill Lynch Investment Management, which expanded its retail and international business presence.
Global Presence
BlackRock has successfully expanded its presence to 70 offices in 30 countries, including Indonesia. BlackRock’s presence in the Indonesian stock market is significant, with the company having equity investments in 20 companies included in the Blue Chip IDX30 stock index.
BlackRock Services
Citing data and information on the company’s official website, BlackRock provides services related to capital markets, data, financial modeling, and regulatory issues. Some of the main services from BlackRock, among others:
- Portfolio Construction and Balance Sheet Solutions, including Sustainability and Climate Risk Consulting.
- Support for Capital Markets & Transactions.
- Data, Analytics, & Financial Modeling Services.
- Enterprise & Regulatory Risk Consulting.
The services or services provided by BlackRock are supported by the company’s superior competencies, including:
- Financial market expertise across multiple asset classes with deep practitioner insights and leading-edge research capabilities.
- Analytics and data management using the latest technology, modeling expertise, and a global risk analytics platform.
- Deep understanding of regulation and enterprise risk management practices.
- Proven project management expertise in handling complex and diverse assignments.
- Disciplined consulting approach and flexible delivery model to support client needs.
Innovation and Transformation
In 2018, BlackRock introduced its first artificial intelligence (AI) lab in Palo Alto.
This initiative is intended to accelerate the utilization of AI and related disciplines such as machine learning, data science, and natural language processing.
Starting in 2019, BlackRock further emphasized its role in the retirement crisis by launching the BlackRock Retirement Solutions Group. With two-thirds of total assets under management relating to retirement, this new move is designed to explore innovative solutions to the challenges faced by retirement funds.
Larry Fink: Source of Inspiration
Larry Fink, the man behind BlackRock’s success, acknowledges the influence of two figures who have greatly influenced his leadership journey in the financial world.
In an interview with Bloomberg Markets, he explicitly stated that he has never tried to emulate anyone else’s leadership style. Still, he does have two figures who have been a source of inspiration to him.
The first is Lee Kuan Yew, the legendary leader who transformed Singapore into a highly respected nation.
The second is Phil Jackson, the former coach of the Chicago Bulls during Michael Jordan’s heyday, who managed to unite outstanding players into an unforgettable championship team.
After a 28-year journey, BlackRock has become a giant in the financial industry.
Interestingly, despite reaching the top of the financial industry, Larry and BlackRock continue to monitor the development of crypto assets, showing their never-ending spirit of innovation.
How Much is BlackRock’s Total Assets Worth?
Quoting cnbcindonesia.com, BlackRock’s total Asset Under Management (AUM) as of September 2021 has reached US$ 9,500,000,000,000,000. If converted at an assumed exchange rate of IDR 14,300/US$, this value becomes IDR 135,850,000,000,000,000,000.
If we imagine that BlackRock is a country, the size of this managed fund is equivalent to the annual Gross Domestic Product (GDP) of the 3rd largest economy in the world, after the United States and China.
At the end of 2021, BlackRock’s AUM surpassed US$ 10,000,000,000. If calculated, the assets managed by BlackRock are now equivalent to the total assets managed by Sovereign Wealth Funds (SWF) worldwide.
With such a large amount under management, it is no wonder that Larry Fink, the founder, has been dubbed the “US$10 Trillion Man”. Currently, 34% of these assets are invested in fixed-income instruments such as bonds, while 50% are directed toward public stocks.
BlackRock’s Impact on the Financial Industry
Best known as a provider of investment management services (BlackRock Investments Management), major global companies, such as Amazon, Google, Netflix, Microsoft, Disney, and Tesla entrust BlackRock to manage their corporate funds.
In addition, BlackRock has also allocated its capital to various sectors, including banking, mining, technology, telecommunications, infrastructure, and property.
What is BlackRock’s Involvement in Crypto?
Quoting creditcoin.org, BlackRock made its most significant move in the crypto space to date, applying to establish a Bitcoin ETF in the US. This investment instrument would allow ordinary investors to gain exposure to Bitcoin price fluctuations without owning the digital asset.
According to Fink, the role of ETFs is radically changing investing, and BlackRock believes that its previous record of ETF applications can ease entry into the crypto world.
The asset management giant aims to simplify investing, making it cost-effective, with an approach Fink calls the “democratization of investing.”
However, this is not BlackRock’s first involvement in crypto. It has previously launched a blockchain-based ETF, clearly showing its intentions. Since then, BlackRock has announced an integration with popular crypto exchange, Coinbase.
That allows BlackRock’s institutional clients to manage their crypto exposure alongside their regular portfolio investments, aiming to make managing crypto exposure possible for institutional clients.
Undoubtedly, the most striking move was the announcement of the filing for a spot Bitcoin ETF in the United States, which excited many people.
BlackRock was forced to resubmit its Bitcoin ETF application after the United States Securities and Exchange Commission stated that the initial submission required additional details regarding the exchanges involved.
Although no decision has been made on its approval, people are eagerly awaiting the outcome, and word on the street is that it may take effect as early as 2024.
Not content with just Bitcoin, BlackRock is now aiming at Ethereum, with an application for an Ethereum ETF in place, reinforcing its belief in the cryptocurrency’s potential and validity.
BlackRock’s Impact on the Crypto World
Quoting creditcoin.org, BlackRock’s steps in the crypto world are believed to have a domino effect, especially given its pivotal position in the financial world.
Many believe that Bitcoin spot ETFs, in particular, could open the gates for a wave of institutional adoption and act as an important point of convergence between traditional finance and the crypto world, pushing the crypto sector towards mainstream acceptance.
Conclusion
In conclusion, looking at BlackRock’s achievements and its role as a global leader in the financial industry, we can witness the impressive journey of this company.
With its presence across multiple sectors and services, BlackRock has established itself as a major investment and asset management force.
In addition, its commitment to sustainability and ongoing transformation reflects an awareness of the company’s role in leading positive trends in the financial world.
Through involvement in initiatives such as establishing artificial intelligence laboratories and submitting crypto ETFs, BlackRock demonstrates its ability to adapt to market and technological changes continuously.
That was an interesting discussion about what BlackRock is from understanding BlackRock’s involvement in the crypto world.
As additional information, to stay up-to-date with the development of the crypto world, you should continue to develop your knowledge by reading the crypto terms dictionary on INDODAX Academy.
Invest in Crypto Assets on INDODAX
Well, now you understand what BlackRock is & its history, global presence, services, and impact on the financial industry.
Furthermore, if you are interested in investing in crypto assets, you must first check the Indonesia Crypto Exchange on the INDODAX Market page.
After checking the price, you can buy crypto assets in a trusted place, such as INDODAX.
In addition, if you plan to use personalized services to buy and sell crypto assets in amounts too large to be processed through the order book, you can visit the Bitcoin OTC page on INDODAX.
It is important to remember that prices in OTC services will always reflect market price movements because transactions are carried out on the spot market. Even if the volume of purchases increases, this does not guarantee a price decrease.
The main focus of this service is to provide convenience during the transaction process for users. A dedicated team will provide guidance through the entire procedure to ensure security and maintain user privacy.
Start OTC Bitcoin transactions on INDODAX now!
