BlackRock CEO Larry Fink Endorses Bitcoin as Legitimate Financial Instrument Amid Market Fluctuations

BlackRock's Larry Fink: Bitcoin Is Legitimate Financial Instrument - BlackRock (NYSE:BLK)

With over $10.6 trillion in assets, BlackRock's embrace of digital currencies could sway investment trends. BlackRock BLK CEO Larry Fink has acknowledged Bitcoin as a legitimate financial instrument in an interview with CNBC's Jim Cramer. What Happened: "I was a proud skeptic, and I studied it, learned about it, and I came away saying, okay, you know, my opinion [for] five years was wrong," Fink said about his previous skepticism. BlackRock's iShares Bitcoin Trust IBIT has become the largest spot Bitcoin BTC/USD ETF by market cap, reinforcing Fink's view that Bitcoin is akin to digital gold. The New York-based firm also achieved a significant milestone with its BlackRock USD Institutional Digital Liquidity (BUIDL) fund, which has surpassed $500 million in market value. This makes it the highest-valued tokenized treasury fund globally, according to its issuer Securitize Markets. Fink emphasized Bitcoin's potential as a hedge against currency debasement: "It is a legitimate financial instrument that allows you to have maybe uncorrelated, non-correlated type of returns." Last week, crypto investment products saw $1.44 billion in net inflows, bringing year-to-date figures to a record $17.8 billion, according to CoinShares. IBIT has $18.44 billion in assets under management since trading commenced in January. Fink's endorsement is significant given BlackRock's $10.6 trillion in assets. Bloomberg Senior ETF Analyst Eric Balchunas noted that such endorsements from legacy firms provide comfort to advisors considering Bitcoin for portfolios, stating it's "hard to overstate how big a deal it is." Also Read: Long-Inactive Bitcoin Wallet Unleashes $60M Amid Market Rebound, Stands To Profit 497X On Sale Why It Matters: Fink's endorsement follows a series of strategic moves by BlackRock into the cryptocurrency space. In March 2024, BlackRock deployed $100 million onto Ethereum's blockchain, anticipating the approval of its new Digital Liquidity Fund. This followed Fink's quote of being "a big believer in tokenization." Fink has featured among prominent figures in traditional finance that have predicted a bright future for Ethereum. Bitcoin has surged past $63,000 in Monday trading, invalidating bearish scenarios and setting the stage for a potential all-time high. Crypto experts, such as Benjamin Cowen, have predicted a significant rally in Bitcoin dominance in the final quarter of 2024. What's Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19. Read Next: The Bitcoin Indicator Showing The 'Best Price Action Is Still Left To Go' This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Image: Shutterstock Market News and Data brought to you by Benzinga APIs

Cryptocurrency Price Movements Today: Bitcoin Back Above $63,000

Meanwhile, BlackRock's Larry Fink endorsed bitcoin as a "legitimate financial instrument." Bitcoin (BTC) was back above $63,000 for the first time in two weeks on Monday, up more than 15% from the lows of last week. Some of that price momentum is likely associated with the viewpoint that the re-election of former President Donald Trump, who has lately become viewed as a stronger supporter of cryptocurrency, is more likely. Trump has indicated he will attend a bitcoin conference in Nashville later this month, according to conference organizers. "Bitcoin's price is positively correlated with the probability of a Trump Presidency and will remain sensitive to election updates," said analysts from brokerage firm Bernstein in a report, according to The Block. The report also offered upbeat scenarios for bitcoin-mining stocks, including their diversification into artificial intelligence. Crypto-related stocks also saw gains in trading Monday. MicroStrategy (MSTR), one of the largest corporate bitcoin investors, saw its shares rise more than 16% while Coinbase (COIN) and miner Marathon Digital (MARA) shares jumped 11% and 18%, respectively. Bitcoin has found another supporter in BlackRock (BLK) CEO Larry Fink, who went from being a self-proclaimed "proud skeptic" to a "major believer." "I'm not trying to say there's not misuses, like everything else, but it is a legitimate financial instrument that allows you to have non-correlated type of returns," Fink told CNBC in an interview Monday, adding that he is "a major believer that there's a role for bitcoin in portfolios." BlackRock's spot bitcoin exchange traded fund -- iShares Bitcoin Trust (IBIT) -- has been one of the category's most-successful products. The fund secured almost $4 billion in net inflows in the second quarter, and roughly $18 billion since it began trading. Cumulative spot bitcoin ETF net inflows hit of $15.8 billion on Friday. The products gathered about $1.4 billion in the entire week, effectively canceling out pressure from German authorities selling cryptocurrency it had seized. A drag on the price of bitcoin has also been removed, as Germany's on-chain bitcoin balance is now about zero. Based on data from Arkham Intelligence, Germany sold 42,000 bitcoin, worth around $2.4 billion, in one week.