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BlackRock CEO Larry Fink Says Bitcoin Legitimate Financial Instrument

Bitcoin Blackrock

Journalist

Tanzeel Akhtar

Journalist

Tanzeel Akhtar

About Author

Tanzeel Akhtar has been covering the cryptocurrency and blockchain sector since 2015. She has written for the Wall Street Journal, Bloomberg, CoinDesk, Bitcoin Magazine and Bitcoin.com.

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Last updated:

July 16, 2024

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BlackRock CEO Larry Fink now sees Bitcoin’s potential as a legitimate financial instrument, citing its ability to provide uncorrelated returns and hedge against currency debasement.

BlackRock is the world’s largest asset management firm reporting $10.6 trillion in assets under management.

Speaking to CNBC ‘Squawk on the Street’ Fink said he went away and studied Bitcoin and learned about the asset class and has now changed his opinion.

“I’m a major believer that there is a role for Bitcoin in portfolios,” said Fink.

Fink’s stance on Bitcoin has evolved significantly over the years, reflecting the broader journey of institutional acceptance of Bitcoin.

In the early years, BlackRock CEO was sceptical about Bitcoin and the broader crypto market. He frequently voiced concerns about the speculative nature of Bitcoin, emphasizing the risks associated with its volatility.

Bitcoin Is a Legitimate Financial Instrument

“I believe Bitcoin is legitimate. I’m not trying to say there’s not that misuses like everything else. But it is a legitimate financial instrument that allows you to have a maybe uncorrelated non-correlated type of returns. I believe it is an instrument that you invest in when you’re more frightened, though. It is an instrument when you believe that countries are debasing their currency by access deficits,” said Fink.

In 2017, during the height of the crypto boom, Fink described Bitcoin as an “index of money laundering,” highlighting the potential for its use in illicit activities.

His scepticism was consistent with the broader sentiment among many financial industry leaders at the time, who viewed cryptocurrencies with caution and suspicion.