Larry Fink, co-founder and CEO of BlackRock, has significantly shifted his stance on cryptocurrencies. In a recent CNBC interview, Fink revealed he has moved past his initial skepticism of assets like Bitcoin and now sees them as a viable component of an investment portfolio.
“I believe Bitcoin is legitimate. While there are potential misuses like with any financial instrument, it offers uncorrelated returns,” Fink told CNBC’s Jim Cramer.
When queried about whether the U.S. budget deficit justifies crypto investments, Fink affirmed this notion. He emphasized that cryptocurrencies could serve as a hedge against the devaluation of national currencies.
Earlier this year, BlackRock’s iShares group launched the iShares Bitcoin Trust (IBIT) after receiving approval from the Securities and Exchange Commission for spot Bitcoin ETFs in the U.S. IBIT has quickly grown to be the largest spot Bitcoin exchange-traded fund, amassing over $18 billion in assets.
Since the IBIT launch, Fink has maintained an optimistic outlook on Bitcoin, highlighting its rapid growth and unprecedented asset accumulation. He is also positive about Ether ETFs, suggesting that an ETH ETF could materialize even if the SEC categorizes Ether as a security.
In March, BlackRock introduced its first tokenized fund on the Ethereum blockchain, known as the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). This fund is fully collateralized by cash, U.S. Treasury bills, and repurchase agreements, offering qualified investors the chance to earn U.S. dollar yields.