BlackRock Embraces Bitcoin as Hedge Against Global Disorder
In a significant shift, BlackRock, the world's largest asset manager with $10.6 trillion in assets, has endorsed Bitcoin as a legitimate financial instrument and a hedge against global disorder.
BlackRock's recent statements highlight Bitcoin as "digital gold" that can provide uncorrelated returns, especially during times of economic uncertainty. The firm believes Bitcoin offers financial control to those in countries where currencies are being debased due to excessive deficits.
The launch of BlackRock's Bitcoin ETF, IBIT, has been a top performer since its inception in January 2024, attracting $4 billion in new assets during Q2 2024 and contributing to BlackRock's record AUM.Despite initial skepticism, Bitcoin is now viewed as an alternative investment for those concerned about the world economy. There are also discussions around its potential industrial applications beyond its use as a financial asset.
BlackRock's endorsement marks a significant milestone in Bitcoin's journey towards mainstream adoption. As leading institutions continue embracing cryptocurrencies, their legitimacy and acceptance will only grow.
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