BlackRock (NYSE:BLK) CEO Larry Fink has acknowledged Bitcoin as a legitimate financial instrument in an interview with CNBC’s Jim Cramer.
What Happened: “I was a proud skeptic, and I studied it, learned about it, and I came away saying, okay, you know, my opinion [for] five years was wrong,” Fink said about his previous skepticism.
BlackRock’s iShares Bitcoin Trust (NASDAQ:IBIT) has become the largest spot Bitcoin (CRYPTO: BTC) ETF by market cap, reinforcing Fink’s view that Bitcoin is akin to digital gold.
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The New York-based firm also achieved a significant milestone with its BlackRock USD Institutional Digital Liquidity (BUIDL) fund, which has surpassed $500 million in market value. This makes it the highest-valued tokenized treasury fund globally, according to its issuer Securitize Markets.
Fink emphasized Bitcoin’s potential as a hedge against currency debasement: “It is a legitimate financial instrument that allows you to have maybe uncorrelated, non-correlated type of returns.”
Last week, crypto investment products saw $1.44 billion in net inflows, bringing year-to-date figures to a record $17.8 billion, according to CoinShares. IBIT has $18.44 billion in assets under management since trading commenced in January.
Fink’s endorsement is significant given BlackRock’s $10.6 trillion in assets. Bloomberg Senior ETF Analyst Eric Balchunas noted that such endorsements from legacy firms provide comfort to advisors considering Bitcoin for portfolios, stating it’s “hard to overstate how big a deal it is.”
The other reason Larry is a powerful advocate IMO is that he’s all about stocks and bonds. He’s pro-humanity. I think when someone is 100% invested in btc/crypto it can scare 60/40 ppl, bc it comes off as a ‘doomsday bet against humanity’ whereas Larry’s saying hey just use a…
— Eric Balchunas (@EricBalchunas) July 15, 2024
Also Read: If you invested $100 in DOGE when Elon Musk first tweeted about it in 2019, here’s how much you’d have today.
Why It Matters: Fink’s endorsement follows a series of strategic moves by BlackRock into the cryptocurrency space. In March 2024, BlackRock deployed $100 million onto Ethereum’s blockchain, anticipating the approval of its new Digital Liquidity Fund. This followed Fink’s quote of being “a big believer in tokenization.” Fink has featured among prominent figures in traditional finance that have predicted a bright future for Ethereum.
Bitcoin has surged past $63,000 in Monday trading, invalidating bearish scenarios and setting the stage for a potential all-time high. Crypto experts, such as Benjamin Cowen, have predicted a significant rally in Bitcoin dominance in the final quarter of 2024.
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This article ‘Bitcoin Is A Legitimate Financial Instrument,’ Says BlackRock CEO Larry Fink originally appeared on Benzinga.com
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