BlackRock, the world’s largest hedge fund with $10.6 trillion in assets under management, has also established the biggest Bitcoin investment fund. In a recent interview on CNBC, Larry Fink, CEO of BlackRock, admitted he was “wrong” about Bitcoin, now referring to it as “digital gold” and recognizing it as a “legitimate” financial instrument.
“I was a skeptic, a proud skeptic” Fink told CNBC’s Jim Cramer. However, after studying the emerging asset, he altered his perspective on Bitcoin. He now sees it as a valid financial tool that can offer uncorrelated returns, particularly in times of economic uncertainty. Fink emphasized, “It’s an instrument to invest in when you’re worried about countries devaluing their currencies due to excessive deficits.”
Fink also discussed the worsening economic and political conditions in various countries and how Bitcoin can provide individuals in such environments with an investment option that transcends their local economies.
In May, BlackRock’s iShares Bitcoin Trust (IBIT) surpassed the Grayscale Bitcoin Trust (GBTC) to become the largest Bitcoin exchange-traded fund globally, with year-to-date inflows exceeding $18 billion as of mid-July. Additionally, BlackRock incorporated Bitcoin ETF shares into its Strategic Income Opportunities Fund (BSIIX) and Strategic Global Bond Fund (MAWIX), showcasing Bitcoin’s potential to benefit income-focused investors, including retirees.
According to CoinShares data released on July 15, Bitcoin investment vehicles experienced their fifth-highest week of inflows, with over $1.35 billion in weekly investments.
Fink’s endorsement of Bitcoin, alongside other bullish developments such as the German government concluding its Bitcoin sell-off, positively impacted Bitcoin’s price. The decentralized asset saw a four-day rise, with the nine-day exponential moving average crossing back over the 200-day exponential moving average, reversing weeks of negative price action and pushing the price above the $60,000 mark.