BlackRock’s co-founder and CEO Larry Fink has increasingly embraced cryptocurrencies. In an interview with CNBC on Monday, he revealed that he has moved past his initial skepticism of digital currencies like Bitcoin, now firmly believing that they belong in an average investor’s portfolio.
“I believe Bitcoin is legitimate. I’m not saying there aren’t misuses like everything else, but it is a legitimate financial instrument that allows you to have uncorrelated returns,’’ Fink told CNBC host Jim Cramer.
When asked if the U.S. budget deficit supports investing in crypto, Fink responded, “absolutely.” He added that cryptocurrencies can help investors hedge against countries devaluing their currencies.
Following approval from the Securities and Exchange Commission for spot Bitcoin ETFs in the U.S., BlackRock’s iShares group introduced the iShares Bitcoin Trust (IBIT) earlier this year. IBIT, the largest spot Bitcoin exchange-traded fund, holds over $18 billion in assets.
Fink has continuously shown optimism about Bitcoin since the launch of IBIT, noting that it is the fastest-growing ETF in history, amassing assets at an unprecedented rate. He is also hopeful about Ether ETFs, suggesting earlier this year that an ETH ETF is feasible, even if the SEC classifies Ether as a security.
In March, BlackRock launched its first tokenized fund on the Ethereum blockchain. The BlackRock USD Institutional Digital Liquidity Fund, also known as BUIDL, is fully backed by cash, U.S. Treasury bills, and repurchase agreements, offering qualified investors a chance to earn U.S. dollar yields.