BlackRock CEO Larry Fink reaffirmed his supportive stance on Bitcoin, describing it as “digital gold” and emphasizing its potential as a key asset in diversified investment portfolios.
Fink made the statement during a July 15 CNBC interview. His latest endorsement comes on the heels of BlackRock’s robust second-quarter earnings, which surpassed analysts’ expectations. The firm has reported record results for the first half of the year.
The iShares Bitcoin Trust (IBIT), BlackRock’s Bitcoin investment vehicle, attracted $4 billion in new assets during the second quarter. This addition significantly contributed to BlackRock’s overall assets under management (AUM), which grew 13% year over year to a record $10.6 trillion.
Bitcoin offers financial control
During the interview, Fink acknowledged his initial skepticism toward crypto and explained how his perspective has evolved. He said he now views Bitcoin as a “legitimate financial instrument” that can provide uncorrelated returns, especially during times of economic uncertainty.
Fink said:
“I believe Bitcoin is legitimate.”
He also emphasized Bitcoin’s role in offering financial control, particularly in countries where currencies are being debased due to excessive deficits.
He added that in countries where people are fearful of their economic future, Bitcoin offers a way to invest in something outside their country’s control, thereby gaining more financial control of their assets.
The BlackRock CEO said:
“I believe we have countries where you’re frightened of your everyday existence and have an opportunity to invest in something that is outside your country’s control. Then you can have more financial control.”
Despite his optimism, Fink warned that Bitcoin should be seen as a hedge rather than a hopeful investment. He stated that Bitcoin is more suitable for those who are cautious about the world economy and their financial existence.
Fink also highlighted the industrial applications of Bitcoin, noting that many people are overlooking its potential beyond being a mere financial asset. He said:
“I believe there’s a great industrial use for it. And I think a lot of people are missing that.”
From skeptic to advocate
The endorsement marks the latest chapter in Fink’s evolving view of crypto and is a significant shift from his earlier views.
In 2017, he referred to Bitcoin as an “index of money laundering,” reflecting a deep skepticism about the flagship crypto’s role in finance….
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