BlackRock CEO Larry Fink said in a speech on Monday that his attitude towards Bitcoin has changed and now recognizes it as an investment opportunity that is "not controlled by the state."

During his speech on Monday, Fink reflected on his previous skepticism about cryptocurrencies and admitted that after digging deeper into the asset class, he realized his misunderstandings.

Fink's shift is not unrelated to BlackRock's recent financial success. BlackRock's latest second-quarter earnings report showed that the company's assets under management hit a record high of $10.65 trillion.

This achievement can be attributed in part to the company's launch of a Bitcoin ETF product at the beginning of the year, which attracted significant inflows and contributed to BlackRock's growth.

Larry Fink's Change of Mindset on Bitcoin

Larry Fink, CEO of BlackRock, admitted in an interview with CNBC that he was skeptical of Bitcoin in the past, but after further research, he admitted that his position five years ago was wrong. Fink once rashly regarded Bitcoin as a "money laundering index" and believed that its main use was limited to this in 2017. Even in 2021, he still holds a negative view on Bitcoin, which was confirmed by Anthony Scaramucci, co-founder of SkyBridge Capital.

Over time, however, Fink’s attitude changed significantly, even in the face of intense SEC scrutiny of the cryptocurrency industry. BlackRock launched the iShares Bitcoin Trust (IBIT) in June 2023, shortly after the SEC filed lawsuits against cryptocurrency platforms such as Coinbase and Binance, which quickly became the largest Bitcoin ETF in the world.

Fink now believes that Bitcoin is a "legitimate financial instrument" that can provide an uncorrelated return stream even if its technology can be abused. He emphasized that Bitcoin is a valuable investment tool when people are worried about the devaluation of national currencies, which is not unfounded in some countries. Fink's view marks his reassessment of Bitcoin's potential value and his recognition of its role in a diversified portfolio.

Bitcoin: The Path to Financial Freedom

Larry Fink now believes that Bitcoin is not just an investment tool, but a path to financial freedom outside of government control. He emphasized that Bitcoin allows investors to operate outside the traditional financial system, thereby gaining greater financial autonomy. Fink said: "I firmly believe that Bitcoin should be part of the investment portfolio." He also mentioned that Bitcoin has good industrial uses, which is a point that many people overlook.

BlackRock's Bitcoin ETF, iShares Bitcoin Trust (IBIT), has proven widespread market acceptance. As of the latest Friday, the ETF managed $18.3 billion worth of Bitcoin for clients, a figure that not only highlights the appeal of Bitcoin, but also shows BlackRock's leadership in the cryptocurrency investment field, while also surpassing the previous market leader Grayscale's $15.7 billion in assets under management.

According to the data, although the price of Bitcoin has fallen by about 14% since the end of the first quarter, IBIT has attracted $4.4 billion in inflows since then. This inflow of funds shows investors' confidence in the long-term value of Bitcoin and their trust in BlackRock's ability to manage this asset.

In the second quarter, BlackRock overall attracted $82 billion in new inflows across all asset types, further demonstrating its leadership in the investment management industry.

Conclusion:

BlackRock CEO Larry Fink's reassessment and recognition of Bitcoin not only marks a change in personal ideas, but also reflects the gradual acceptance and attention of the entire investment management industry to cryptocurrencies.

Fink's shift and BlackRock's success in Bitcoin ETFs indicate that cryptocurrencies, as an emerging asset class, are gradually being integrated into the mainstream of traditional financial markets.

As more and more investors seek diversification and non-correlated returns, Bitcoin and the concept of financial freedom it represents are expected to have a place in future asset allocation. #贝莱德 #比特币 #加密货币投资 #资产管理