Bitcoin
‘Bitcoin is a legitimate financial instrument,’ says BlackRock CEO Larry Fink
‘Bitcoin is a legitimate financial instrument,’ says BlackRock CEO Larry Fink
Black stone (NYSE:Black) CEO Larry Fink acknowledged Bitcoin as a legitimate financial instrument in an interview with CNBC’s Jim Cramer.
What happened: “I was a proud skeptic, I studied the subject, I learned about it and I came away saying, okay, you know, my opinion [for] five years was wrong”, Fink he said about his previous skepticism.
BlackRock’s iShares Bitcoin Investment Fund (NASDAQ:I BITE) became the largest to see Bitcoin (CRYPTOCURRENCY: 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 hit a significant milestone with its BlackRock USD Institutional Digital Liquidity (BUIDL) fund, which 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 devaluation: “It’s a legitimate financial instrument that allows you to have perhaps uncorrelated and uncorrelated 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 began 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 traditional firms provide comfort to advisors considering Bitcoin for portfolios, stating that it’s “hard to overstate how big a deal this is.”
The other reason Larry is a powerful advocate in my opinion is that he is all for stocks and bonds. He is pro-humanity. I think when someone is 100% invested in btc/crypto, it can scare 60/40 people because it feels like an “apocalyptic bet against humanity,” whereas Larry is saying, hey, use a…
— Eric Balchunas (@EricBalchunas) July 15, 2024
Read too: If you invested $100 in DOGE when Elon Musk first tweeted about it in 2019, here’s how much you would have today.
Why does this matter?: Fink’s endorsement follows a series of strategic moves by BlackRock in the crypto space. In March 2024, BlackRock invested $100 million in the Ethereum blockchain in anticipation of the approval of its new Digital Liquidity Fund. This followed Fink’s decision to quote being “a big believer in tokenization.” Fink has stood out among prominent figures in traditional finance who have predicted a bright future for Ethereum.
The story continues
Bitcoin surpassed $63,000 in Monday trading, invalidating bearish scenarios and setting the stage for a potential all-time high. Cryptocurrency experts such as Benjamin Cowen have predicted a significant spike in Bitcoin dominance in the last 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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