In a surprising turn of events, Larry Fink, CEO of the $10.6-trillion asset management firm BlackRock, admitted he was wrong about Bitcoin and now hails it as “digital gold” and a “legitimate” financial asset.
Speaking to CNBC’s Jim Cramer, Fink confessed, “I was a skeptic, a proud skeptic,” before studying Bitcoin and changing his perspective. “It is a legitimate financial instrument that allows you to maybe have uncorrelated type of returns. I believe it is an instrument that you invest in when you’re more frightened, though. It is an instrument when you believe countries are debasing their currency by excess deficits, and some countries are,” he added.
Fink highlighted the worsening economic and political conditions in some regions, suggesting Bitcoin offers individuals in those areas an alternative investment option beyond their local economies.
In May, BlackRock’s iShares Bitcoin Trust (IBIT) surpassed Grayscale Bitcoin Trust (GBTC) as the world’s largest Bitcoin exchange-traded fund. As of July 15, IBIT’s year-to-date inflows exceeded $18 billion. Additionally, BlackRock integrated Bitcoin ETF shares into its Strategic Income Opportunities Fund (BSIIX) and the Strategic Global Bond Fund (MAWIX), emphasizing Bitcoin’s potential for income-focused investors like retirees. Recent CoinShares data revealed that Bitcoin investment vehicles had their fifth-highest week of inflows, with over $1.35 billion in weekly investments as of July 15.
Bitcoin’s price reacted positively to Fink’s comments and other bullish developments, such as the German government’s final Bitcoin sale, which ended significant market pressure from the release of 50,000 coins. The cryptocurrency saw four consecutive days of price increases. The nine-day exponential moving average crossed over the 200-day exponential moving average, reversing weeks of negative price action and pushing Bitcoin back above the $60,000 mark.
This acknowledgment from a major financial figure like Larry Fink marks a significant shift in the perception of Bitcoin, potentially driving further interest and investment in the cryptocurrency market.
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