Larry Fink, CEO of BlackRock, has publicly reversed his stance on bitcoin, from a self-proclaimed skeptic to a supporter who sees the cryptocurrency as a valuable addition to investment portfolios.
Speaking on CNBC’s “Squawk on the Street” on Monday, Fink highlighted his evolving perspective amidst bitcoin’s surge to a two-week high of over $63,000. He described bitcoin as a “legitimate financial instrument” capable of offering returns that are independent from traditional financial assets.
During the interview, coinciding with BlackRock’s Q2 earnings announcement where the company exceeded Wall Street’s expectations with a rise in assets under management to $10.6 trillion, Fink expressed confidence in bitcoin’s role. Notably, BlackRock manages the iShares Bitcoin Trust ETF (IBIT).
“I’m a major believer that there is a role for bitcoin in portfolios,” Fink stated, attributing the moniker “digital gold” to the cryptocurrency, which currently holds a market valuation of $1.26 trillion. He emphasized bitcoin’s appeal as an investment during periods of economic uncertainty, particularly when fiat currencies are subject to depreciation due to excessive deficits.
Fink’s journey regarding bitcoin has seen notable shifts. Previously, in 2017, he referred to bitcoin as an “index of money laundering” during an Institute of International Finance meeting. However, by 2020, he suggested to the Council on Foreign Relations that bitcoin could potentially become a global market asset through evolution.
Reflecting on his earlier skepticism, Fink admitted, “I was a proud skeptic, and I’ve learned over the last year or two that my views were wrong.”
Beyond BlackRock’s iShares Bitcoin Trust ETF (IBIT), other notable bitcoin-backed ETFs include (GBTC), (ARKB), and (BITB).
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