BlackRock CEO Larry Fink now sees Bitcoin’s potential as a legitimate financial instrument, citing its ability to provide uncorrelated returns and hedge against currency declines.
BlackRock is the world’s largest asset management firm, managing $10.6 trillion in assets. “I firmly believe that bitcoin plays a role in portfolios,” – Fink said.
Fink’s stance on Bitcoin has evolved significantly over the years, reflecting the broader path of institutional acceptance of Bitcoin.
Early on, the BlackRock CEO was skeptical of Bitcoin and the broader cryptocurrency market. He often expressed concerns about the speculative nature of Bitcoin, highlighting the risks associated with its volatility.
Bitcoin is a legal financial instrument
“I believe bitcoin is legal. I’m not trying to say that it doesn’t have abuses like everything else. But it is a legitimate financial instrument that allows you to get perhaps an uncorrelated kind of profit. However, I believe it is an instrument that you invest in when you are more scared. It is an instrument if you believe that countries are devaluing their currency through access deficits,” Fink said.
In 2017, at the height of the cryptocurrency boom, Fink described bitcoin as an “indicator of money laundering,” highlighting the potential for its use in illegal activities. His skepticism was consistent with the broader sentiment among many financial industry leaders at the time, who approached cryptocurrencies with caution and suspicion.
The turning point came with BlackRock’s introduction of bitcoin ETFs. Fink said he now sees Bitcoin’s potential as “digital gold.”
