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Bitcoin’s stuttering relationship with the trillion dollar world of big banks and asset managers looked to have taken a positive turn this week when Blackrock, the world’s largest asset manager, assembled a working group to look at blockchain technology and cryptocurrencies. The news helped push bitcoin up to $7,558 and restore hope that the bear market might finally be coming to an end for beleaguered wallet holders. However, Blackrock Chief Executive Larry Fink back-tracked yesterday, claiming that the world’s largest asset manager was “a big student of blockchain,” but didn’t see a “huge demand for cryptocurrencies.” He told Bloomberg Television: "I don’t believe any client has sought out crypto exposure. I’ve not heard from one client who says, ‘I need to be in this.’"

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The u-turn is a blow for the crypto-community who had hoped that any investment in cryptocurrencies by Blackrock would mark a pivot for the company and a major institutional endorsement for the insurgent technology. The company is the world’s biggest firm in asset management with a massive $6.3 trillion in assets as of June 30. Anatoly Castella, CEO, Elpis Investments was surprised by the u-turn. He told Express.co.uk: “Are they honestly saying that out of $6.3 Trillion of Assets Under Management, not even a fraction is invested into cryptocurrencies? “Being part of the crypto sector for a while, the interest from Institutional investors is rising on a daily basis, and its hard to believe that a financial powerhouse such as Blackrock is limiting itself to just research into cryptocurrencies.”

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But why take the risk? Mr Fink’s statements come from a need to protect his client’s money and trust, is bitcoin really worth the bother? Mr Castella said: “I see Bitcoin as a new opportunity to diversify personal and institutional wealth by adding another type of asset in a portfolio. “Larry Fink mentioned that his clients didn’t express any interest in the crypto market, but since when do clients know what they want? I believe in a change of tune from institutions such as Blackrock and Berkshire Hathaway is long overdue. There are potential opportunities that must be considered before their competitors gain a solid advantage over them.” With Goldman Sachs putting a more crypto-friendly CEO in place and central banks slowly lumbering towards regulation, the expert says that he’d most like to see more financial players look to diversify their asset using crypto.

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