BlackRock CEO Larry Fink has reversed course on Bitcoin, acknowledging that he was mistaken in his previous skepticism towards the cryptocurrency. In a recent interview with CNBC, he even described Bitcoin as “digital gold” and recognized it as a legitimate financial instrument.
“I was a skeptic, a proud skeptic,” Fink, head of the world’s largest asset management firm overseeing $10.6 trillion in assets, admitted to CNBC’s Jim Cramer.
He then highlighted Bitcoin’s potential as an investment that offers uncorrelated returns, particularly attractive during times of economic uncertainty and currency debasement due to excessive deficits in some countries.
“It is a legitimate financial instrument that allows you to maybe have uncorrelated type of returns. I believe it is an instrument that you invest in when you’re more frightened, though,” he said.
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BlackRock Becomes a Major Player in Crypto
Fink’s shift in his stance toward Bitcoin comes as BlackRock’s involvement in the cryptocurrency space continues to grow. The company’s iShares Bitcoin Trust (IBIT) recently surpassed Grayscale Bitcoin Trust (GBTC) to become the largest Bitcoin exchange-traded investment fund globally.
According to data from SoSoValue, BlackRock’s IBIT has seen $18.38 billion in inflows since its launch earlier this year. Fidelity’s Wise Origin Bitcoin Fund (FBTC) is the second most popular ETF in terms of inflows, attracting $9.75 billion year-to-date.
It is worth noting that BlackRock has also repurposed shares of the Bitcoin ETF by adding them to its Strategic Income Opportunities Fund (BSIIX) and the Strategic Global Bond Fund (MAWIX), which shows the potential of Bitcoin to aid income-focused investors such as retirees.
During the interview, Fink admitted his earlier views were misguided. He claimed that he changed his mind about Bitcoin after studying it.
“I studied it, learned about it. And I came away saying, ‘OK, you know, my opinion five years ago was wrong.’ Here’s my opinion. Say this is what I believe in today. I believe in the opportunity today. I believe Bitcoin is legitimate,” Fink stated.
Larry Fink continues to be the best CMO of bitcoin.
The messenger matters more than the message now. pic.twitter.com/jcgYuRODFy
— Anthony Pompliano 🌪 (@APompliano) July 15, 2024
Meanwhile, the price of Bitcoin reacted positively to Fink’s remarks. The leading cryptocurrency briefly crossed the $65,000 mark on Tuesday, recording a 14% increase over the past week.
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Bitcoin ETFs Continue to See Inflows
On Monday, spot Bitcoin ETFs attracted $301 million in inflows, showcasing the ongoing bullish trend in the cryptocurrency market.
According to data from SoSoValue, BlackRock’s IBIT led with $117.25 million, followed closely by Ark Invest and 21Shares’ ARKB with $117.19 million. Fidelity’s FBTC saw $36.15 million in inflows, and Bitwise’s BITB recorded $15.24 million.
ETFs from VanEck, Invesco, Galaxy Digital, and Franklin Templeton also reported positive net inflows. Meanwhile, Grayscale’s GBTC and ETFs from Valkyrie, WisdomTree, and Hashdex had no net flows.
Last week, digital asset investment products totaled $1.44 billion in inflows, pushing year-to-date inflows to $17.8 billion, CoinShares reported.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
