BlackRock CEO Larry Fink, who since 2017 referred to Bitcoin (BTC) as a speculative asset and a vehicle for money laundering, has consistently supported BTC over the past year, recognizing its potential as a major player in the financial world.
In a recent interview with CNBC’s Squawk Box, Fink admitted that his opinion of BTC has evolved over the past five years. He was wrong in his earlier assessment after studying the largest cryptocurrency on the market and its technology.
Bitcoin’s Legitimacy As Financial Instrument
During the interview, Fink expressed his new perspective on Bitcoin, stating that he now believes it to be a legitimate financial instrument, also emphasizing that while there may be instances of misuse, similar to any other asset, Bitcoin offers uncorrelated type of returns and serves as a means of investment during times of economic uncertainty.
The CEO of BlackRock, which also launched a Bitcoin ETF in January, further highlighted the importance of BTC in portfolios, comparing it to digital gold and emphasizing that it has a significant industrial use, which he said is often overlooked by investors.
Fink’s latest comments align with his previous bullish statements on Bitcoin as an asset class, where he also drew parallels between Bitcoin and gold, noting that both serve as a hedge against inflation and currency devaluation.
BlackRock’s Assets Reach $10.6 Trillion
Fink pointed out over a year ago that Bitcoin has the advantage of a limited supply, setting a ceiling on its total creation, also explaining that BlackRock’s goal with their spot Bitcoin ETF is to provide a wealth storage instrument, establishing a connection between BTC and gold.
Nonetheless, Fink’s interest extends beyond gold comparisons, as he sees Bitcoin’s long-term potential as a significant factor.
Fink’s belief in BTC stems from its ability to digitize gold and offer an alternative to traditional currencies. He argues that Bitcoin is not tied to any specific currency, making it an international asset that can protect wealth against inflation and economic uncertainties.
Interestingly, BlackRock recently achieved a milestone, with assets under management reaching a staggering $10.6 trillion in the first semester of the year.
As reported by Bloomberg, the asset manager saw significant inflows, with clients adding $51 billion to its long-term mutual funds in the second quarter of the year, highlighting the growing interest in BlackRock’s offerings, including its spot BTC ETF, which has secured the top position in terms of inflows in the newly approved market since its launch.
At the time of writing, BTC is trading at $63,000, up over 5% in the past 24 hours and over 12% in the past seven days.
Featured image from the WSJ, chart from TradingView.com
