BlackRock's Larry Fink said bitcoin is a legitimate financial asset that everybody should hold.
This comes as the asset manager on Monday posted better-than-expected second quarter earnings.
BlackRock's iShares Bitcoin Trust (IBIT) added $4 billion in assets during the quarter.
BlackRock (BLK) CEO Larry Fink reiterated his belief that Bitcoin {{BTC}} is an asset that everybody should consider holding as part of their portfolio.
“My opinion five years ago was wrong,” Fink said in an interview with CNBC. “I believe bitcoin is a legitimate financial instrument,”
Fink's appearance Monday morning came following BlackRock's second quarter earnings results, which topped analyst estimates as assets under management increased 13% year-over-year to $10.6 trillion.
Hard to overstate how big a deal it is for Larry Fink, who runs $10.6T, to keep giving these full throated endorsements of bitcoin as legit asset class for everyday portfolios. Buy in from BlackRock - as well as other legacy firms like Fidelity - gives boomer advisors comfort and… https://t.co/fu2EiRQco5
— Eric Balchunas (@EricBalchunas) July 15, 2024
A minor contributor to the company's AUM figure is its iShares Bitcoin Trust (IBIT), which launched in January and has accumulated more than $18 billion since, including $4 billion in the second quarter.
Bitcoin, Fink continued, should be part of every investor’s portfolio as it potentially allows for uncorrelated returns and provides financial control.
“It is an instrument that you invest in when you’re more frightened,” said Fink. "It is an instrument when you believe that countries are debasing their currency by excess deficits.”
“There’s a real need for everyone to look at it as one alternative,” he concluded.
