BlackRock CEO Larry Fink admits Bitcoin skepticism, now a believer
BlackRock CEO Larry Fink, who has called Bitcoin (BTC) a speculative asset and a money laundering tool since 2017, has embraced BTC during the last year, recognizing its financial potential.
Fink told CNBC's Squawk Box that his perception of BTC has changed over the last five years. His first conclusion was inaccurate after examining the biggest cryptocurrency and its technology.
Financial Legitimacy of Bitcoin
Fink stated in the interview that he now views Bitcoin as a legitimate financial instrument, emphasizing that while there may be misuse, Bitcoin offers uncorrelated returns and can be used as an investment during economic uncertainty.
The CEO of BlackRock, which introduced a Bitcoin ETF in January, compared BTC to digital gold and stressed its industrial utility, which investors typically miss.
Fink's current remarks support his earlier optimistic views on Bitcoin as an asset class, where he compared it to gold as a hedge against inflation and currency depreciation.
Over a year ago, Fink noted that Bitcoin has a finite quantity, limiting its production, and that BlackRock's spot Bitcoin ETF is a wealth storage tool that links BTC and gold.
Bitcoin's long-term potential intrigues Fink, who looks beyond gold parallels.
Fink trusts BTC because it can digitize gold and replace existing currencies. He claims Bitcoin is an international asset that can safeguard money from inflation and economic uncertainty since it is not connected to any currency.
According to Bloomberg, BlackRock's spot BTC ETF has led the newly approved market in inflows since its launch, with clients adding $51 billion to its long-term mutual funds in the second quarter.
BTC is now trading at $63,000, up 5% in 24 hours and 12% in 7 days.
