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Why BlackRock’s Larry Fink Thinks ‘Everyone’ Should Take Another Look at Bitcoin
Why BlackRock’s Larry Fink Thinks ‘Everyone’ Should Take Another Look at Bitcoin
BlackRock Inc. Company (London share:BLACK) CEO Larry Fink he was skeptical about the prospects of Bitcoin (CRYPTOPHORUS: BTC) for years, but remained open-minded and eventually came to believe that it was a legitimate financial instrument. He now considers himself a “great believer”.
What to know: On CNBC’s “Squawk On The Street” on Monday, Fink admitted that he had been skeptical of bitcoin for years, but after studying and learning about it, he acknowledged that his previous opinion was wrong.
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Fink now views bitcoin as a legitimate financial instrument that offers potentially uncorrelated returns.
IShares Bitcoin Trust (NASDAQ:IBITS) has grown to become the largest spot bitcoin ETF, raising more than $18 billion since its launch in January.
BlackRock’s CEO told CNBC that bitcoin is a financial instrument that could attract more attention when investors are “scared.” Political uncertainty and rising government debt are a couple of reasons investors might want to consider bitcoin, he said, calling it “digital gold.”
“I think there’s a real need for everyone to look at this,” Fink said. “I’m a big believer that there’s a role for bitcoin in wallets… I think there’s a huge industrial use for it, and I think a lot of people don’t realize that.”
See also: According to Cathie Wood, owning 6 Ethereum (ETH) could make you a millionaire, here’s why it can be true.
BlackRock’s IBIT has skyrocketed in popularity, likely due to its lower fees than competitors and the fact that BlackRock is the world’s largest money manager. The company has also filed to potentially launch an ETF for Ethereal (CRYPTOPHORUS: ETH), the second largest cryptocurrency in the world by market capitalization after Bitcoin.
In a send on X after appearance by Fink, Bloomberg senior ETF analyst Eric Balchunas noted the potential impact of Fink giving “full support to bitcoin as a legitimate asset class.”
“Buying from BlackRock, as well as other incumbents like Fidelity, gives boomer advisors comfort and a hedge to make their allocations,” Balchunas said, adding that he believes betting against the success of spot bitcoin ETFs is a “stupid” move.
$BTC Price Action: According to The Guardian, Bitcoin is up about 5.9% in a 24-hour period, settling around $63,782 at the time of publication. Benzinga Pro.
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