Bitcoin Is ‘Legitimate Financial Instrument’

BlackRock’s Larry Fink said that Bitcoin is a legitimate financial asset that everyone should hold.

The development comes after the asset manager reported better-than-expected second-quarter earnings on Monday.

BlackRock’s iShares Bitcoin Trust (IBIT) added $4 billion to its assets during the quarter.

BlackRock (BLK) CEO Larry Fink reiterated that he believes Bitcoin {{BTC}} is an asset that everyone should consider holding as part of their portfolio.

“My opinion five years ago was wrong,” Fink said in an interview with CNBC. “I believe Bitcoin is a legitimate financial instrument,”

Fink’s comments Monday morning came after BlackRock reported second-quarter earnings that beat analyst estimates, with the company’s assets under management up 13% from a year earlier to $10.6 trillion.

It’s hard to overstate how big of a deal it is that Larry Fink, who made $10.6 trillion, continues to give such open support to bitcoin as a legitimate asset class for everyday portfolios. The buyout from BlackRock — and other legacy firms like Fidelity — is providing comfort and… https://t.co/fu2EiRQco5

— Eric Balchunas (@EricBalchunas) July 15, 2024

A small contributor to the company’s AUM figure is the iShares Bitcoin Trust (IBIT), which launched in January and has raised more than $18 billion since then, $4 billion of which was raised in the second quarter.

Fink said Bitcoin should be in every investor’s portfolio because it provides potentially uncorrelated returns and provides financial control.

“It’s a tool you invest in when you’re more fearful,” Fink said. “It’s a tool when you believe countries are undervaluing their currencies because of excessive deficits.”

“There is a real need for everyone to look at this as a single alternative,” he concluded.