The Verdict on BlackRock: Time to Buy, Hold, or Offload BLK Stock?

Daily Trade

BlackRock (NYSE:BLK), which has been described as the world’s largest asset manager, is truly a whale in the world of finance. Does this mean you should invest in BLK stock in December? If you’re seeking exposure to the world of cryptocurrency, you should certainly put BlackRock on your watch list and consider a share position.

On the other hand, some value-focused investors might contend that BlackRock stock isn’t cheap right now. There may be merit to this argument, and BlackRock insider selling could set off some alarm bells. So, let’s get into the bearish and bullish arguments now.

Who Sold Millions of Dollars’ Worth of BLK Stock?

Here’s the scoop. Reportedly, BlackRock Chairman and CEO Larry Fink sold $25 million worth of BLK stock during the past 12 months. Fink is a celebrity in the financial sector, so his stock purchases and sales are a big deal.

Yet, that’s not the full story. The aforementioned $25 million worth of share selling only represents 6.9% of Fink’s holdings of BlackRock stock. Hence, Fink remains heavily invested in his company, and evidently still has confidence in BlackRock’s future prospects.

Then, there’s the question of valuation. BlackRock’s GAAP-measured trailing 12-month price-to-earnings ratio of 21.21x might seem fine, but relatively speaking, it’s on the high end of the spectrum. For comparison, the sector median P/E ratio is 9.97x.

Also, BLK stock staged a big rally in November. Value-conscious contrarians may choose to wait until the stock pulls back 10% before re-assessing and re-strategizing.

Get Cryptocurrency Exposure Through BlackRock Stock

I just presented a reason to be cautious about BlackRock stock, but cryptocurrency enthusiasts may choose to start a share position, anyway. That’s because BlackRock, a veritable giant among financiers, is preparing to introduce a couple of important exchange traded funds.

First, BlackRock reportedly met with the trading and markets division of the U.S. Securities and Exchange Commission to discuss the details of a proposed spot Bitcoin (BTC-USD) ETF. Eric Balchunas, a a senior ETF analyst at Bloomberg, stated that BlackRock “has made first step towards filing for” a spot Ethereum (ETH-USD) ETF.

So far, the SEC hasn’t officially approved a spot Bitcoin ETF for U.S. investors. That’s what makes BlackRock stock so interesting now, though. BlackRock could make history if it’s the first company in the U.S. to introduce a fully approved spot Bitcoin ETF followed by a spot Ethereum ETF.

And if any company can achieve this, it would be BlackRock. Dominik Rohe, head of BlackRock Americas ETF and Index Investments business, stated, “In the U.S., we expect total assets in managed models will more than double from $4.5 trillion today to over $10 trillion by 2027.” BlackRock is a financial behemoth with the means and the determination to get approvals, eventually, for spot Bitcoin and Ethereum ETFs.

BLK Stock: Buy Now, or Wait?

If cryptocurrency just doesn’t capture your interest, then there’s no hurry to buy BlackRock stock. You can let it pull back 10% before considering a long position.

In contrast, cryptocurrency aficionados should think about grabbing a few BLK stock shares now. After all, it might not be long before BlackRock gets the SEC’s approval for one or more spot crypto ETFs.

Either way, you’ll surely want to keep BlackRock on your radar. This is a gigantic and highly influential financier that can’t be ignored. So, depending on your stance on cryptocurrency, you’ll probably want to own some BlackRock shares sooner or later.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

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