Illustration of Larry Fink's Shift: Embracing Cryptocurrencies

Larry Fink’s Shift: Embracing Cryptocurrencies

BlackRock’s co-founder and CEO Larry Fink has now become a strong advocate for cryptocurrencies. In an interview with CNBC on Monday, he stated that he has moved past his initial skepticism of digital currencies like Bitcoin. Fink now believes that cryptocurrencies have a valid 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 supports the case for investing in crypto, Fink replied, “Absolutely.” He noted that cryptocurrencies can help investors hedge against the devaluation of currencies by various countries.

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 become the largest spot Bitcoin exchange-traded fund, managing over $18 billion in assets.

Since the launch of IBIT, Fink has frequently expressed confidence in Bitcoin, mentioning that IBIT is the fastest-growing ETF in history, amassing assets at an unprecedented rate. Fink is also positive about Ether ETFs, indicating earlier this year that an ETH ETF is possible even if the SEC classifies Ether as a security.

In March, BlackRock introduced its first tokenized fund on the Ethereum blockchain. The BlackRock USD Institutional Digital Liquidity Fund, also known as BUIDL, is fully supported by cash, U.S. Treasury bills, and repurchase agreements, providing qualified investors with the chance to earn U.S. dollar yields.

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