Bitcoin
BlackRock’s Larry Fink Says He’s a ‘Big Believer’ in Bitcoin
Key points
- BlackRock CEO Larry Fink told CNBC’s “Squawk on the Street” that he sees a future for bitcoin after previously being a “proud skeptic” of the cryptocurrency.
- BlackRock has become a major player in the cryptocurrency market.
Bitcoin has the potential to be a way for everyday investors to hedge against significant government turmoil, according to the head of the world’s largest asset manager. BlackRock CEO Larry Fink told CNBC’s “Squawk on the Street” that he sees a future for bitcoin after having been a “proud skeptic” of the cryptocurrency. “I’m a big believer that there’s a role for bitcoin in portfolios,” Fink said Monday, calling it “digital gold.” BlackRock has become a significant player in cryptocurrencies. The company’s iShares Bitcoin Trust (IBIT) has raised more than $18 billion since its launch in January, making it the largest bitcoin exchange-traded fund. The company has also filed to potentially launch an ether ETF. Fink said political risk and rising government debt are some of the reasons investors hold bitcoin. “I’m not trying to say that there aren’t misuses, like everything else, but it’s a legitimate financial instrument that allows you to have uncorrelated returns,” Fink said. “I think it’s an instrument that you invest in when you’re most scared. It’s an instrument for when you think countries are devaluing their currencies by running excessive deficits, and some countries are.” Bitcoin bulls have long pointed to the threat of inflation and government insolvency as reasons to buy the cryptocurrency. Bitcoin has rallied sharply since the Covid-19 pandemic, which has seen massive government spending and a global spike in inflation. BTC.CM=5Y mountain Bitcoin is set to hit record highs in 2024. However, there have been times in recent years when bitcoin has appeared to trade in line with the Nasdaq Composite, suggesting it’s more of a risk asset. Fink said that even outside of bitcoin, he sees rising government spending as one of the biggest problems facing the world. “Public deficits are growing very fast as a percentage of GDP,” Fink said.