Larry Fink, the CEO of BlackRock, has identified Bitcoin (BTC) as a unique asset class. In support of this view, the asset management powerhouse has initiated a global campaign aimed at institutional partners to promote broader acceptance of the cryptocurrency.
The price of Bitcoin continues to climb, exceeding the $65,000 threshold on Monday.
BlackRock CEO Advocates for Bitcoin Adoption Campaign
During the company’s third quarter earnings call, Fink highlighted that BlackRock is actively discussing digital assets with institutions worldwide. The focus of these discussions is on asset allocation for Bitcoin, positioning it as an alternative to traditional commodities like gold.
In the earnings report, Fink expressed that the growth of Bitcoin is not influenced by regulation or the identity of the next US president. Instead, he pointed out that factors such as liquidity and transparency drive this growth. He called for improved analytics and greater acceptance from investors, despite previously being skeptical about Bitcoin.
Fink suggested that Bitcoin and cryptocurrencies, in general, are analogous to other emerging financial products that, despite initial hesitations, eventually achieve significant scale.
Read More: What Is a Bitcoin ETF?
Larry Fink’s evolving stance on Bitcoin is quite significant, given that he was once a prominent skeptic of the cryptocurrency. Similar to JPMorgan’s CEO Jamie Dimon, Fink has previously dismissed Bitcoin as a speculative and potentially dangerous investment.
Nonetheless, his recent statements might reflect a broader sentiment within BlackRock. The company’s digital asset head, Robbie Mitchnick, recently characterized Bitcoin as a safe haven and a fundamentally risk-off asset.
Mitchnick noted that Bitcoin is not correlated with the economic conditions or policies of any specific country, emphasizing that its limited supply shields it from typical currency devaluation and political instability risks.
This month, another BlackRock executive, Jay Jacobs, remarked that there is substantial potential for Bitcoin acceptance, predicting that the market for Bitcoin could grow to $30 trillion in the near future.
BlackRock’s Bitcoin ETF Surges to $23 Billion
During the earnings call, CEO Larry Fink announced that the firm’s IBIT ETF has skyrocketed to a valuation of $23 billion within just nine months. Launched on January 11, the ETF offers institutional investors indirect access to Bitcoin, achieving remarkable milestones including significant capital inflows and record trading volumes.
“…and we will continue to innovate with new products to simplify and reduce the cost of investing,” Fink shared.
BlackRock’s IBIT is a frontrunner in the U.S. Bitcoin ETF market, managing nearly 370,000 BTC and emerging as one of the largest holders of Bitcoin. It has outpaced MicroStrategy’s Bitcoin holdings and now only trails behind Satoshi Nakamoto and Binance. Arkham’s data indicates that BlackRock’s Bitcoin reserves are worth approximately $25.35 billion.
Read more: Who Owns the Most Bitcoin in 2024?
As BlackRock and other crypto ETF providers strive to deliver institutional access to Bitcoin, concerns over custodial risks have been raised. Critics also warn that increased institutional involvement might threaten the foundational principles Bitcoin was created to uphold.
The cryptocurrency was designed to decentralize financial authority; however, as institutional control increases, there are fears that it could revert power to the entities Bitcoin was originally intended to circumvent.
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