Bitcoin: BlackRock’s CEO Larry Fink Recognizes its Legitimacy
Bitcoin, as claimed by the CEO of BlackRock, Larry Fink, is a legitimate financial instrument that represents an attractive investment opportunity, especially during periods of market uncertainty and fear. In an interview with CNBC, Fink acknowledged that, despite his initial skepticism, he carefully studied Bitcoin and realized his past mistakes in evaluating this asset.
Fink Notes Bitcoin’s Uniqueness
Fink noted that the first cryptocurrency provides investors with a unique opportunity to invest in an asset that is beyond the control of individual states. This makes Bitcoin particularly interesting for diversifying investment portfolios. «I do not want to claim that cryptocurrency is completely free from abuses — like any other financial instrument, Bitcoin has its risks and drawbacks. However, it is a legitimate financial asset that can provide income not connected to traditional financial markets,» Fink added.
BlackRock’s Success with Bitcoin-Based ETF
In mid-July, BlackRock announced that in the first half of the year, the company’s assets under management reached $10.6 trillion, which is 13% higher compared to the same period last year. This increase is partially due to a significant inflow of funds into exchange-traded funds (ETFs). One of such successful funds is an ETF based on the spot price of Bitcoin. At the end of May this year, BlackRock’s IBIT fund surpassed a competitive product from Grayscale in terms of asset volumes, reaching $19.68 billion.
According to SoSoValue data, after the approval of BlackRock’s IBIT, the net inflow of funds into this fund amounted to $18.26 billion, and the total assets of the fund reached $18.32 billion. Additionally, according to BuyBitcoinWorldwide, IBIT accounts for 1.5% of the total Bitcoin supply in the market.
