Larry Fink, the CEO of Blackrock, the world’s largest asset manager with $10.5 trillion in assets under management, has explained why he shifted from skepticism to advocacy for bitcoin, viewing the cryptocurrency as “digital gold” and a hedge against economic instability. “I believe bitcoin is legitimate,” he emphasized, adding: “I do believe there’s a real need for everyone to look at it as one alternative.”

Blackrock CEO Larry Fink Embraces Bitcoin as ‘Digital Gold’

Larry Fink, the CEO of the world’s largest asset manager, Blackrock, which oversees trillions of dollars in investments across various asset classes globally, shared his insights about bitcoin and the role of cryptocurrencies in an interview with CNBC on Monday. Blackrock reported nearly $10.5 trillion in assets under management (AUM) in the first quarter.

Jim Cramer, host of CNBC’s Mad Money, highlighted Blackrock’s move to allow investments in BTC through a bitcoin exchange-traded fund (ETF) and the company’s consideration of an ethereum ETF. He also noted Fink’s unexpected embrace of cryptocurrency, particularly bitcoin.

“I was a skeptic. I was a proud skeptic,” Fink responded. “And I studied it, learned about it, and I came away saying: ‘Okay, you know, my opinion five years ago was wrong, here’s my opinions today. This is what I believe in today. I believe in the opportunity today.'” The Blackrock executive stressed:

I believe bitcoin is legitimate.

“I’m not trying to say there’s not misuses like everything else, but it is a legitimate financial instrument that allows you to have, maybe, uncorrelated, non-correlated type of returns,” Fink said.

“I believe it is an instrument that you invest in when you’re more frightened, though. It is an instrument when you believe that countries are debasing their currency … by excess deficits. And some countries are. I believe we have countries where you’re frightened of your everyday existence. [Bitcoin] gives you an opportunity to invest in something that is outside your country’s control, then you can have more financial control. So I’m a major believer that there is a role for bitcoin in portfolios,” the Blackrock CEO opined.

“I believe you’re going to see that as one of the asset classes we look at. I look at it as digital gold,” he further shared, emphasizing:

As I said before, I do believe there’s a real need for everyone to look at it as one alternative to, I would say, the optimism that I have in the world.

“If you want to hedge hope, bitcoin is not an instrument for hope unless you’re hopeful you’re going to make a lot of money on it. I look at it as a vehicle in which you’re expressing your financial acumen in something you’re more frightened of, the world, more frightened of your existence. I believe there’s a great industrial use for it. And I think a lot of people are missing that,” the Blackrock executive further noted. Cramer agreed, mentioning his own change of heart about cryptocurrency following Fink’s lead.

Fink revealed earlier this year that about two years ago, he became “a big believer” in bitcoin. He expressed strong optimism about BTC. A couple of years after he became a bitcoin supporter, Blackrock launched a spot bitcoin exchange-traded fund (ETF), the Ishares Bitcoin Trust (IBIT), which is now the top-performing bitcoin ETF in the U.S. Blackrock has also filed with the U.S. Securities and Exchange Commission (SEC) to launch an ether ETF.

Source : Bitcoin News - Jul 16, 2024