BlackRock CEO Larry Fink described Bitcoin (BTC) as a legitimate financial instrument, particularly appealing to those with a pessimistic outlook on global affairs.
BlackRock CEO Larry Fink described Bitcoin (BTC) as a legitimate financial instrument, particularly appealing to those with a pessimistic outlook on global affairs. In an interview with CNBC, Fink called himself a "major believer" in the leading cryptocurrency, in what could be his most emphatic endorsement of Bitcoin to date. “It is a legitimate financial instrument,” Fink stated. “I believe it is an instrument you invest in when you’re more frightened, though.”
Fink's remarks came just two days after a failed assassination attempt on former President Donald Trump at a campaign rally in Pennsylvania, which resulted in one death and two critical injuries. Following the incident, Bitcoin surged to its highest level in weeks. Rich Rosenblum, co-founder of trading firm GSR, commented that political volatility often drives Bitcoin buying, highlighting the attempted assassination as a stark reminder of the fragility of the current political landscape.
BlackRock, the world's largest asset manager, has recently seen its assets under management (AUM) soar to a record $10.65 trillion as of June 30. This milestone, achieved just six months after the launch of its iShares Bitcoin Trust (IBIT) in January, surpassed the company's $10.2 trillion estimate for the second quarter. BlackRock's Q2 earnings report revealed that the firm attracted $51 billion in new client cash to its long-term investment funds, marking a 13% year-over-year increase.
“If you want to hedge hope, Bitcoin is not an instrument for hope,” Fink said. “I look at it as a vehicle in which you’re expressing... that you’re more frightened of the world, you’re more frightened [for] your existence.”
Despite his personal optimism, Fink acknowledged that BlackRock's recent aggressive moves into the crypto space reflect broader market sentiments. Last summer, BlackRock surprised the industry by filing an application for a spot Bitcoin ETF with the U.S. Securities and Exchange Commission (SEC). Bitcoin ETFs have continued to perform strongly, with $1.35 billion in weekly gains reported last week.
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