During an interview with CNBC, BlackRock CEO Larry Fink expressed his updated opinion on Bitcoin, stating that he now believes Bitcoin is a legitimate financial instrument that everyone should consider holding in their investment portfolios. Fink’s previous stance on Bitcoin has shifted, acknowledging that his opinion from five years ago was incorrect.
Following BlackRock’s second-quarter earnings results, which exceeded analysts’ expectations, Fink highlighted the company’s robust performance as assets under management climbed to $10.6 trillion, marking a 13% year-over-year increase. A notable contributor to this figure is BlackRock’s iShares Bitcoin Trust (IBIT), launched earlier this year, which has attracted over $18 billion in investments, including $4 billion in the second quarter alone.
Fink emphasized the importance of including Bitcoin in investment portfolios, citing its potential for uncorrelated returns and offering a level of financial control. He described Bitcoin as an investment option to consider during times of economic uncertainty or when there are concerns about currency devaluation due to excessive deficits.
According to Fink, Bitcoin serves as a valuable asset class that can provide diversification and act as a hedge against traditional financial instruments. He encouraged investors to view Bitcoin as a viable alternative within their investment strategies, particularly during turbulent economic conditions.