BlackRock CEO Larry Fink Says He’s a “Major Believer” in Bitcoin

TLDR

• BlackRock CEO, Larry Fink, has expressed his embrace of Bitcoin in an interview with CNBC.
• He said that he’s a “major believer” in Bitcoin and that the asset is a “legitimate financial instrument.”
• Fink was previously known for being a Bitcoin skeptic and has frequently addressed his concerns about its speculative nature.

In an interview with CNBC, BlackRock CEO Larry Fink gave a huge endorsement of Bitcoin by calling it a “legitimate financial instrument.” He also said that he’s a “major believer” in the leading digital currency.

However, this wasn’t always the case. When Bitcoin first burst on the scene, Fink was a “proud skeptic.” He frequently voiced concerns about the speculative nature of the popular digital currency and addressed the risks associated with its volatility. In 2018, he even said that his clients had zero interest in crypto. But things have changed a lot since then.

The leading cryptocurrency has completely revolutionized how we make transactions. There’s no longer a need for intermediaries such as banks and the fees have become minimal.

Due to all the benefits it brings, more individuals have started adopting Bitcoin. Today, they use it for various online activities from shopping online to sending money to friends and family abroad. Gambling at Bitcoin casinos has also become a trend. An individual who wants to play in a real money online casino can now do so without using their credit card and inputting personal information.

More merchants have also started accepting Bitcoin as a payment method and there are even Bitcoin ATMs emerging all over the globe.

Additionally, investors have expressed more belief in its long-term potential and view it as a highly valuable asset. Hence the change in Fink’s stance on Bitcoin.

In 2020, we already started to see his attitude towards the popular digital currency beginning to take another direction. That’s when he said that Bitcoin has “caught the attention” of many people and that it could possibly evolve into a global market asset.

At the time, it was rare for major traditional financial players to provide such bullish takes on cryptocurrency. However, it wasn’t the first time it happened. Billionaire hedge fund managers Stanley Druckenmiller and Paul Tudor Jones II have previously expressed their belief in Bitcoin and both have allocated large portions of their assets to Bitcoin before.

But now, Fink’s stance on Bitcoin has taken a major turn. He said that he studied the cryptocurrency, learned more about it, and realized that his opinion five years ago was wrong.

He also added that although there are still misuses, like with everything else, Bitcoin is a legitimate financial instrument that gives individuals a chance to have “uncorrelated, non-correlated type of returns.”

Fink also noted that Bitcoin is a good asset to invest in when you’re “more frightened.” With many countries debasing their currency, you need something to put your money into that is outside of your country’s control. Fink sees a huge role for Bitcoin here, which is why he referred to it as “digital gold.” He added that there’s a real need for everyone to look at Bitcoin as an alternative.

Also, it’s worth noting that Fink’s remarks came just two days following a failed assassination attempt on former US President Donald Trump. After the incident, Bitcoin surged in price and reached its highest level in weeks. Political volatility is also what often drives Bitcoin purchases.

Fink’s unexpected embrace of the cryptocurrency is huge news to the crypto world as BlackRock oversees trillions of dollars in investments across different asset classes. The company reported close to $10.5 trillion in assets under management (AUM) in the first quarter of 2024.

However, he also acknowledged that his personal optimism for Bitcoin isn’t why BlackRock has recently made some aggressive moves into the crypto space. Instead, the move reflects broader market sentiments.

In the summer of 2023, the company surprised the financial world by filing for a spot Bitcoin ETF with the US Securities and Exchange Commission (SEC).

Earlier this year, Bloomberg News also reported that BlackRock’s iShares Bitcoin Trust (IBIT.O) has become the largest fund for Bitcoin in the world, racking up almost $20 billion in total assets since listing in the US in January 2024.