BlackRock’s co-founder and CEO Larry Fink is now more supportive of cryptocurrencies than ever before. In a recent interview with CNBC, he mentioned that he has moved past his initial skepticism towards digital currencies like Bitcoin. He now firmly believes that cryptocurrencies have a place in the 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 could be a reason to invest in cryptocurrencies, Fink agreed, saying, “absolutely.” He added that digital currencies can help investors hedge against countries that are devaluing their currencies.
Following the 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 is now the largest spot Bitcoin exchange-traded fund, with over $18 billion in assets.
Since the introduction of IBIT, Fink has consistently expressed optimism about Bitcoin, noting that IBIT is the fastest-growing ETF in history, accumulating assets at an unprecedented rate. Fink is also optimistic about Ether ETFs. He suggested that an ETH ETF is possible even if the SEC treats Ether as a security.
In March, the financial giant launched its first tokenized fund on the Ethereum blockchain. The BlackRock USD Institutional Digital Liquidity Fund, also known as BUIDL, is fully collateralized by cash, U.S. Treasury bills, and repurchase agreements. It offers qualified investors an opportunity to earn U.S. dollar yields.