Larry Fink, co-founder and CEO of BlackRock, has shifted his stance on cryptocurrencies, now openly supporting their inclusion in an average investor’s portfolio. In a CNBC interview on Monday, Fink stated that he has moved past his initial skepticism about cryptocurrencies like Bitcoin and sees them as legitimate financial instruments offering uncorrelated returns.
When questioned about the U.S. budget deficit and its implications for crypto investment, Fink affirmed that it indeed supports the case for investing in cryptocurrencies. He explained that crypto can serve as a hedge against countries devaluing their currencies.
Following approval from the Securities and Exchange Commission (SEC) for spot Bitcoin ETFs in the U.S., BlackRock’s iShares group introduced the iShares Bitcoin Trust (IBIT) earlier this year. IBIT has become the largest spot Bitcoin exchange-traded fund, managing assets exceeding $18 billion.
Since the launch of IBIT, Fink has continually expressed enthusiasm for Bitcoin, highlighting that IBIT is the fastest-growing ETF in history, accumulating assets at an unprecedented rate. Fink is also optimistic about the potential for Ether ETFs, suggesting that an ETH ETF is feasible even if the SEC categorizes Ether as a security.
In March, BlackRock launched its first tokenized fund on the Ethereum blockchain. The BlackRock USD Institutional Digital Liquidity Fund, known as BUIDL, is fully collateralized by cash, U.S. Treasury bills, and repurchase agreements. This fund offers qualified investors the opportunity to earn yields in U.S. dollars.