Why BlackRock’s Larry Fink Believes ‘Everyone’ Should Take a Second Look at Bitcoin
BlackRock Inc (NYSE:BLK) CEO Larry Fink was skeptical about the future of Bitcoin (CRYPTO:BTC) for years, but he remained open-minded and eventually came to believe it was a legitimate financial instrument. He now considers himself a “big believer.”
What You Need 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 it and learning about it, he admitted that his previous opinion was wrong.
Don’t miss:
Fink now sees Bitcoin as a legitimate financial instrument offering potentially uncorrelated returns.
iShares Bitcoin Trust (NASDAQ:IBIT) has become the largest spot bitcoin ETF, generating more than $18 billion since its launch in January.
BlackRock CEO tells CNBC that bitcoin is a financial instrument that could gain more traction when investors are “scared.” Political uncertainty and rising government debt are a few reasons investors might want to consider bitcoin, he said, calling it “digital gold.”
“I believe there’s a real need for everyone to look at this,” Fink said. “I’m a firm believer in a role for bitcoin in portfolios… I think there’s a great industrial use for it, and I think a lot of people are missing out on it.”
See also: According to Cathie Wood, holding 6 Ethereum (ETH) can make you a millionaire, here are the tips on why that might be true.
BlackRock’s IBIT has likely gained popularity due to its lower fees compared to its rivals and BlackRock’s status as the world’s largest money manager. The company has also proposed launching an ETF for Ethereum (CRYPTO:ETH), the world’s second-largest cryptocurrency by market cap after bitcoin.
Bloomberg Senior ETF analyst Eric Balchunas, who posted on X after Fink’s speech, noted the potential impact of Fink’s “open support of Bitcoin as a legitimate asset class.”
“Buying from BlackRock and other traditional firms like Fidelity gives boomer advisors the comfort and assurance to make the allocation,” Balchunas said, adding that he believes betting against the success of spot bitcoin ETFs is a “foolish” move.
$BTC Price Action: Bitcoin is up around 5.9% over a 24-hour period and is trading around $63,782 as of press time, according to Benzinga Pro.
Read the next article:
The story continues
“THE SECRET WEAPON OF ACTIVE INVESTORS” Step Up Your Stock Market Game With The #1 “news & everything” trading tool: Benzinga Pro – Click Here to Start Your 14-Day Trial Today!
Get the latest stock analysis from Benzinga?
This article, Why BlackRock’s Larry Fink Believes ‘Everyone’ Should Take a Second Look at Bitcoin, was originally published on Benzinga.com