‘Bitcoin Is A Legitimate Financial Instrument,’ Says BlackRock CEO Larry Fink

BlackRock CEO Larry Fink Says ‘Bitcoin Is a Legitimate Financial Instrument’

BlackRock (NYSE:BLK) CEO Larry Fink acknowledged that Bitcoin is a legitimate financial instrument in an interview with CNBC’s Jim Cramer.

What Happened: “I was a proud skeptic and I looked into it, I learned about it and I said, okay, you know, I gave my opinion. [for] “It was five years off,” Fink said of his earlier skepticism.

BlackRock’s iShares Bitcoin Trust (NASDAQ:IBIT) has become the largest spot Bitcoin (CRYPTO:BTC) ETF by market cap, reinforcing Fink’s view that Bitcoin is like digital gold.

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The New York-based firm also reached a significant milestone with its BlackRock USD Institutional Digital Liquidity (BUIDL) fund, which has a market value of over $500 million, making it the highest-valued tokenized treasury fund globally, according to its issuer, Securitize Markets.

Fink emphasized Bitcoin’s potential as a hedge against currency depreciation: “This is a legitimate financial instrument that allows you to get perhaps uncorrelated, uncorrelated returns.”

Crypto investment products saw net inflows of $1.44 billion last week, bringing the year-to-date figures to a record $17.8 billion, according to CoinShares. IBIT manages $18.44 billion in assets since trading began in January.

Fink’s endorsement is significant given BlackRock’s $10.6 trillion in assets. Bloomberg Senior ETF Analyst Eric Balchunas said that such endorsements from traditional firms provide comfort to advisors considering Bitcoin in their portfolios, adding that “it’s hard to overstate how big of a deal this is.”

The other reason Larry is a strong advocate is because I think he’s all about stocks and bonds. He’s pro-humanity. I think when someone goes 100% btc/crypto, that can scare the 60/40 people because it seems like a ‘doomsday bet on humanity’ whereas Larry just says…

— Eric Balchunas (@EricBalchunas) July 15, 2024

Also Read: If you had invested $100 in DOGE in 2019 when Elon Musk sent his first tweet, how much money would you have today?

Why It Matters: Fink’s endorsement follows a series of strategic moves by BlackRock into the cryptocurrency space. In March 2024, BlackRock invested $100 million into Ethereum’s blockchain in anticipation of the approval of its new Digital Liquidity Fund. This comes after Fink said he was a “big believer in tokenization.” Fink has been among the prominent figures in traditional finance who have predicted a bright future for Ethereum.

The story continues

Bitcoin surpassed $63,000 on Monday, invalidating bearish scenarios and paving the way for a potential all-time high. Crypto experts like Benjamin Cowen have predicted a significant rise in Bitcoin dominance in the final quarter of 2024.

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This article, ‘Bitcoin Is a Legitimate Financial Instrument,’ According to BlackRock CEO Larry Fink, was originally published on Benzinga.com