BlackRock CEO: Bitcoin is ‘digital gold’

BlackRock Chairman and CEO Larry Fink said he believes Bitcoin is a “legitimate financial asset class” for those seeking financial control outside of traditional systems.

Once a skeptic, Fink now sees Bitcoin (BTC) as a legitimate asset class.

“As you know, I was a skeptic. I was a proud skeptic,” Fink told CNBC. “I studied it, I learned it, and I came away saying, ‘OK, my idea from five years ago was wrong.'”

Fink highlighted Bitcoin’s potential for independent returns and its role as a hedge against currency depreciation and geopolitical instability.

“As I’ve said before, I look at this as digital gold and I believe everyone should look at this as an alternative to the optimism I have about the world,” Fink said.

Uncertainty

Fink acknowledged Bitcoin’s industrial uses and appeal in uncertain times, pointing to a shift in institutional perspectives on the cryptocurrency, noting that many people are investing in the currency out of fear and lack of trust in their country’s institutions.

“I see it as a vehicle for you to express your financial acumen in something that you’re more afraid of in the world. You’re more afraid of your existence,” Fink said.

BlackRock CEO said on July 6 that he hopes to democratize Bitcoin and other cryptocurrencies, making them more accessible and affordable for investors.

In March, BlackRock took a step toward including bitcoin when it filed with the SEC to include bitcoin ETFs in its Global Allocation Fund. According to the filing, the fund planned to purchase shares in exchange-traded products (ETPs).