BlackRock CEO Larry Fink Calls Bitcoin “Digital Gold” and “Legitimate” Financial Instrument
BlackRock CEO Larry Fink Admits He Was Wrong About Bitcoin, Calls it “Digital Gold”
In a recent interview with CNBC, BlackRock CEO Larry Fink made a surprising admission – he was wrong about Bitcoin. Fink, who had previously been a skeptic of the decentralized asset, now refers to Bitcoin as “digital gold” and a “legitimate” financial instrument.
During the interview with CNBC’s Jim Cramer, Fink explained his change of heart, stating, “I was a skeptic, a proud skeptic,” before delving into his research on Bitcoin and the potential benefits it offers as an investment. He highlighted Bitcoin as a financial instrument that provides uncorrelated returns and serves as a hedge against currency debasement in countries with excessive deficits.
Fink also touched on the deteriorating economic and political situations in some countries, emphasizing the role Bitcoin could play in providing individuals in those societies with an alternative investment option beyond their geographical borders.
BlackRock’s involvement in the Bitcoin market has been significant, with its iShares Bitcoin Trust (IBIT) surpassing Grayscale Bitcoin Trust (GBTC) as the world’s largest Bitcoin exchange-traded investment fund. The firm has also integrated shares of the Bitcoin ETF into its Strategic Income Opportunities Fund and Strategic Global Bond Fund, catering to income-focused investors like retirees.
The positive sentiment surrounding Bitcoin was further bolstered by recent developments, including the German government’s decision to offload its final Bitcoin holdings, alleviating selling pressure in the market. As a result, Bitcoin’s price saw a notable uptick, with the nine-day exponential moving average crossing back over the 200-day exponential moving average after weeks of negative price action.
Overall, Fink’s endorsement of Bitcoin as a legitimate financial instrument and BlackRock’s continued involvement in the market signal a growing acceptance of cryptocurrency within traditional finance circles. As Bitcoin continues to gain traction as a store of value and investment asset, its role in diversifying portfolios and hedging against economic uncertainties is becoming increasingly recognized.
