From initial skepticism and criticism, to gradually realizing the potential of blockchain, and then to viewing Bitcoin as "digital gold", BlackRock CEO Larry Fink's attitude towards Bitcoin has undergone a profound change in 8 years . This article was organized, compiled and re-written by Wu Blockchain Blockchain .
(Preliminary news:BlackRock, which manages US$10 trillion, may follow the example of Coinbase and launch its own blockchain? )
(Background supplement: BlackRock’s assets have exceeded US$10 trillion, a new high. How can BlackRock, as wealthy as any country, dominate global finance? )
Larry Fink is the CEO and co-founder of BlackRock, the world's largest asset management company. Fink was born in 1952 and earned a bachelor's degree in political science and an MBA from the University of California, Los Angeles.
He began his career at First Boston in 1976 and achieved early success developing mortgage-backed securities (MBS). He founded BlackRock in 1988 and grew it into a global powerhouse with trillions of dollars in assets under management.
His attitude towards Bitcoin and cryptocurrency can be divided into the following stages:
1. Early Views (2017-2018): Doubts and Criticisms
In its early years, Fink was highly skeptical of Bitcoin. In 2017, he called Bitcoin "the index of money laundering," expressing his concerns about its association with illegal activity. During this period, Fink and BlackRock Inc. were largely negative on cryptocurrencies, focusing more on traditional financial instruments.
"Bitcoin is just a manifestation of the need for money laundering in the world, nothing more."
2. 2018-2020: Gradually pay attention while being cautious
While still cautious, Fink is beginning to acknowledge the potential of blockchain technology and the growing interest in cryptocurrencies. However, he still does not believe that Bitcoin is a legitimate financial asset, viewing it primarily as a speculative and high-risk investment.
"While Bitcoin and cryptocurrencies remain a highly speculative market, we cannot ignore the technology behind it."
“Cryptocurrency remains a speculative instrument and the technology behind it may change the entire financial system, but Bitcoin itself has not proven its viability as a currency.”
"Bitcoin attracts a lot of attention, but we still need to observe its long-term stability."
"We are seeing more and more people showing interest in Bitcoin around the world, especially in countries with unstable currencies."
“Bitcoin’s volatility is one of its biggest problems, making it difficult to serve as a reliable store of value.”
3. 2021: Shift to accepting Bitcoin
By 2021, Fink's stance began to soften. He recognized the growing institutional interest in Bitcoin and acknowledged its potential as a financial instrument. During this period, BlackRock began including Bitcoin futures in some of its funds, marking a major shift in its approach to the asset class.
"Bitcoin has captured the interest and imagination of many people."
"I believe Bitcoin has the potential to become a global asset, which is why we are paying more and more attention to it now."
"Market volatility reminds us that Bitcoin and other cryptocurrencies are still in the early stages of development and require more maturity and stability."
4. 2022: Accept Bitcoin as “Digital Gold”
In 2022, Fink publicly recognized Bitcoin as “digital gold,” a term often used by Bitcoin enthusiasts. He pointed out that Bitcoin has the potential to disrupt the financial industry, although he emphasized the importance of regulations and infrastructure to support its development. The year marked a turning point, with BlackRock beginning to actively explore Bitcoin-related products.
"Bitcoin has the potential to revolutionize the financial industry."
"We need a clearer regulatory framework to ensure the long-term sustainability of the cryptocurrency market."
“While Bitcoin may not replace fiat currencies, it does provide investors with a different investment option, especially amid increased global economic uncertainty.”
5. 2023: Launch of Bitcoin ETF
BlackRock attracted widespread attention in 2023 by filing for a Bitcoin exchange-traded fund (ETF). Fink reiterated his view that Bitcoin could disrupt the financial industry, emphasizing its potential as a hedge against inflation and currency debasement. The move reflects BlackRock's efforts to develop a broader strategy by capitalizing on institutional investors' growing interest in digital assets. When asked how much value he thought Bitcoin would be worth in the future, Larry Fink said: "What is the value of human freedom?"
“The future of cryptocurrencies lies in how they are integrated into existing financial systems, rather than as stand-alone systems.”
"Bitcoin is becoming a global asset class and it's probably one that we all should be paying attention to."
“As we see increased global economic uncertainty, assets like Bitcoin may play an important role in providing investors with a non-correlated hedging option.”
6. 2024: Fully accept Bitcoin into investment portfolios
By 2024, Fink fully embraced Bitcoin, calling it a legitimate financial instrument. He highlighted Bitcoin’s potential to provide uncorrelated returns and its role as a safe-haven asset during times of economic uncertainty. Fink said Bitcoin could be particularly valuable in countries with unstable currencies, or in situations where individuals seek financial autonomy outside of government control. BlackRock’s Bitcoin ETF has gained significant ground due to strong client demand, further solidifying the firm’s commitment to the cryptocurrency space.
“We are now seeing more and more institutional investors view Bitcoin as a safe-haven asset similar to gold, especially during periods of market turmoil.”
“Bitcoin is a legitimate financial instrument that can provide uncorrelated returns in an environment of fear. In some countries, if you are afraid of your daily life, Bitcoin provides some level of financial control. "
"Bitcoin may not just be 'digital gold', it may become part of the global financial infrastructure, and we are carefully studying its potential."
