Bitcoin
Why BlackRock’s Larry Fink Believes “Everyone” Should Take Another Look at Bitcoin
Why BlackRock’s Larry Fink Believes “Everyone” Should Take Another Look at Bitcoin
BlackRock Inc (NYSE:Black) CEO Larry Fink was skeptical about the prospects of Bitcoin (CRYPTOCURRENCY: BTC) for years, but he remained open-minded and eventually came to believe that it was a legitimate financial tool. He now considers himself a “great believer”.
What to know: On CNBC’s “Squawk On The Street” on Monday, Fink admitted that he had been skeptical of bitcoin for years, but after studying and learning about it, he recognized that his previous opinion was wrong.
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Fink now considers bitcoin a legitimate financial instrument that offers potentially uncorrelated returns.
iShares Bitcoin Trust (NASDAQ:I BITE) has grown to become the largest bitcoin ETF in sight, raising more than $18 billion since its launch in January.
BlackRock CEO told CNBC that bitcoin is a financial instrument that may get more attention when investors are “scared.” Political uncertainty and rising government debt are some of the reasons investors may want to consider bitcoin, he said, calling it “digital gold.”
“I think there’s a real need for everyone to look at this,” Fink said. “I’m a big believer that there’s a role for bitcoin in portfolios… I think there’s a huge industrial use case for it, and I think a lot of people are overlooking that.”
See too: According to Cathie Wood, owning 6 Ethereum (ETH) can make you a millionaire, that’s why it might be true.
BlackRock’s IBIT has skyrocketed in popularity, likely due to its lower fees compared to competitors and the fact that BlackRock is the world’s largest money manager. The firm has also filed to potentially launch an ETF for Ethereum (CRYPTOCURRENCY: ETH), the world’s second largest cryptocurrency by market capitalization, after bitcoin.
On a publish on X after the appearance of Fink, senior ETF analyst at Bloomberg Eric Balchunas noted the potential impact of Fink giving “full endorsements to bitcoin as a legitimate asset class.”
“The purchase of BlackRock — as well as other traditional firms like Fidelity — gives baby boomer advisors comfort and coverage to allocate,” Balchunas said, adding that he believes betting against the success of spot bitcoin ETFs is “idiotic.”
$BTC Price Action: Bitcoin is up about 5.9% over a 24-hour period, hovering around $63,782 at press time, according to Benzinga Pro.
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