BlackRock CEO Larry Fink, once a skeptic of Bitcoin, now advocates for the cryptocurrency as “digital gold” and a legitimate financial asset, reflecting a broader acceptance in traditional finance.
Initial Skepticism of the BlackRock CEO
Larry Fink, the CEO of BlackRock, has undergone a remarkable transformation in his views on Bitcoin, as evidenced by his recent interview with CNBC. In 2017, during the cryptocurrency boom, Fink was particularly critical of Bitcoin, describing it as a “vehicle for money laundering.” This sentiment was common among financial industry leaders who viewed cryptocurrencies as speculative, unregulated, and often linked to illegal activities.
Shift in Perception
Over the years, the narrative surrounding Bitcoin and other cryptocurrencies has evolved significantly. The potential of blockchain technology and the value proposition of digital assets have become clearer.
At a conference in New York last year, Fink emphasized the revolutionary potential of blockchain technology, stating:
“The contribution of securities will define the next generation of markets… Distributed ledgers [for blockchain technology] will enable real-time settlement of transactions and will transform the entire ecosystem.”
Embracing Bitcoin
In a recent interview on CNBC with Jim Cramer, Fink acknowledged his past skepticism and detailed his change of heart regarding Bitcoin. He now views Bitcoin as “digital gold” and a “legitimate financial asset.” Fink emphasized Bitcoin’s potential to provide uncorrelated returns and its role as a hedge against currency devaluation due to excessive deficits.
“It is a legitimate financial asset that allows you to potentially achieve disconnected types of returns. I believe it is an instrument you invest in when you are most fearful. It is a means when you believe that countries are devaluing their currencies due to excessive deficits, and some countries are doing that.
BlackRock’s Spot ETF Success
BlackRock’s involvement in the cryptocurrency space has not been limited to words. The company’s Bitcoin spot ETF, launched in 2024, has become the most successful ETF in the history of trading exchanges. By May, BlackRock’s iShares Bitcoin Trust (IBIT) had surpassed the Grayscale Bitcoin Trust (GBTC) as the largest Bitcoin investment fund in the world, with year-to-date inflows reaching $18 billion by mid-July.
BlackRock is also expanding its presence in the Ethereum space. The spot Ethereum ETF, listed with the DTCC as $ETHA, has received SEC approval along with seven other Ethereum ETFs. However, trading awaits further SEC clearance for the S-1 filings.
Strategic Integration
To further solidify Bitcoin’s role in traditional finance, BlackRock has integrated shares of its Bitcoin ETF into the Strategic Income Opportunities Fund (BSIIX) and the Strategic Global Bond Fund (MAWIX). This move underscores Bitcoin’s potential to benefit income-focused investors, such as retirees.
Fink’s journey from a Bitcoin skeptic to a major proponent exemplifies the broader shift in the traditional financial sector toward recognizing the value and potential of digital assets.