BlackRock’s co-founder and CEO, Larry Fink, has significantly shifted his stance on cryptocurrencies. In a recent interview with CNBC, Fink revealed that he has moved past his initial skepticism about digital currencies, particularly Bitcoin. He now believes that cryptocurrencies have a rightful 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 stated during the interview with CNBC host Jim Cramer.
When questioned about whether the U.S. budget deficit supports the case for investing in cryptocurrency, Fink responded affirmatively. He suggested that cryptocurrencies could serve as a hedge for investors against countries that devalue their currencies.
Following approval from the Securities and Exchange Commission for spot Bitcoin ETFs in the U.S., BlackRock’s iShares group launched the iShares Bitcoin Trust (IBIT) earlier this year. IBIT has become the largest spot Bitcoin exchange-traded fund, amassing over $18 billion in assets.
Since the launch of IBIT, Fink has consistently expressed his bullish outlook on Bitcoin, citing that IBIT is the fastest-growing ETF in history, accumulating assets at an unprecedented rate. He is also hopeful about the prospect of Ether ETFs, stating that an ETH ETF is feasible even if the SEC categorizes Ether as a security.
In March, BlackRock introduced 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, providing qualified investors the opportunity to earn U.S. dollar yields.