The CEO of the world’s largest asset manager, BlackRock, Lary Fink, has touted Bitcoin as a legitimate financial instrument.
While speaking in an interview with CNBC, Fink admitted that his past skepticism of Bitcoin and the cryptocurrency industry was wrong. He noted that BTC was a legitimate financial instrument that investors should consider adding to their portfolio.
BlackRock CEO Vouches For Bitcoin As A Financial Instrument
Fink noted that Bitcoin needed to be added to every investor needs to add Bitcoin to their investment portfolio as it will guarantee them unique returns and more control over their finances.
He further touted Bitcoin as an alternative to gold, saying it is an asset one should invest in when one is more frightened.
He further noted that Bitcoin was the ideal solution for investors who want to hedge against depreciating currencies because of poor economic policies.
Fink said,
I’m a major believer that there is a role for Bitcoin in portfolios. I believe you’re going to see that as one of the asset classes that we all look at. I look at it as digital gold, as I said before.”
Fink has not always been a supporter of Bitcoin and cryptocurrencies. However, he has admitted that his past views on the industry were misguided. He stated that BTC was a good choice for diversifying one’s investment portfolio.
He noted that he has since learned more about Bitcoin and other cryptocurrencies. As such, his opinion on the assert has changed, and he now believes there is an opportunity in the BTC industry.
BlackRock’s IBIT ETF Contributes To AUM Growth
Fink’s interview with CNBC came after the asset manager released its earnings results for the second quarter of 2024. BlackRock’s assets under management hit $10.6 trillion in Q2 2024, representing a 13% year-over-year gain.
One of the products that caused the surge in ETF is the iShares Bitcoin Trust (IBIT) exchange-traded fund (ETF) that BlackRock launched in January this year. The IBIT ETF holds 316,276 BTC valued at more than $18 billion.
According to Bloomberg ETF analyst Eric Balchunas, Fink’s endorsement of Bitcoin was a positive development. Therefore, it was not prudent to downplay the success of these ETFs and the inflows they have amassed so far.
The BlackRock IBIT ETF boasts the largest volumes among the eight spot Bitcoin ETFs that started trading in the US earlier this year.
On June 15, total inflows into spot Bitcoin ETFs hit $301 million, with IBIT taking the giant share of $117.25 million, according to SoSoValue data.
BlackRock is also among the applicants awaiting the final approval of spot Ethereum ETFs.
The US Securities and Exchange Commission (SEC) urged all ETF issuers to submit their S-1 registration statements by Wednesday. Analysts now estimate a possible launch by July 23.
