BlackRock CEO Larry Fink has placed Bitcoin (BTC) in a separate asset class. With this belief, the giant asset management firm has launched an international campaign targeting institutional partners to drive the adoption of this cryptocurrency.
The price of Bitcoin continues its upward trend, surpassing the $65,000 mark on Monday.
BlackRock CEO Drives Bitcoin Adoption Campaign
Larry Fink made these comments in the company's Q3 earnings report, indicating that BlackRock is engaging with institutions globally on digital assets. Specifically, the discussion focused on allocating assets to Bitcoin, viewing it as an alternative to commodities like gold.
Furthermore, in the earnings report, Larry Fink noted that the expansion of Bitcoin does not depend on regulation or who becomes the next US President. Instead, liquidity and transparency are the driving factors, with those who have been skeptical of Bitcoin calling for more analysis and greater acceptance from investors. With these, Fink implied that Bitcoin and cryptocurrencies in general are similar to other new financial products, which, although sluggish, will ultimately achieve significant scale.
Larry Fink's stance on Bitcoin marks a notable shift, given that he was previously a public critic of Bitcoin. Like JPMorgan CEO Jamie Dimon, the CEO of BlackRock has a history of viewing BTC as a speculative asset that could be dangerous.
However, Fink's statements may represent the common view of managers at BlackRock. The company's Head of Digital Assets, Robbie Mitchnick, recently stated that Bitcoin is a safe haven and fundamentally a non-risky asset. Mitchnick expressed that Bitcoin is not tied to the economic health or policies of any particular country, and added that its scarcity makes it immune to the usual risks of currency devaluation and political instability.
Earlier this month, another BlackRock executive, Jay Jacobs, said there is still plenty of room for Bitcoin adoption. The US Head of Thematic and Active ETFs estimated that Bitcoin will grow into a $30 trillion market in the coming years.
BlackRock's Bitcoin ETF Surges to $23 Billion
BlackRock CEO Larry Fink revealed that the company's IBIT ETF has grown and is now worth $23 billion in just 9 months. Launched on 01/11, this ETF provides institutional investors with indirect access to Bitcoin. This period has been marked by significant success, with the fund attracting billions of dollars in investment and breaking trading volume records.
"...and we will continue to be pioneers in creating new products to make investing easier and more suitable,"
Fink added.
BlackRock's IBIT is a market leader in the Bitcoin ETF space in the US. It manages nearly 370,000 BTC, making it one of the largest institutional holders of Bitcoin. IBIT has surpassed MicroStrategy's Bitcoin holdings and is now second only to Satoshi Nakamoto and Binance. Data from Arkham shows that BlackRock's Bitcoin stash is worth $25.35 billion.
Valuation of BlackRock's Bitcoin Stash. Source: ArkhamAs BlackRock and other Crypto ETF issuers continue to provide institutional access to Bitcoin, concerns about custodial risks have emerged. Critics also worry that increased institutional adoption could undermine Bitcoin's core principles.
Cryptocurrencies were designed to decentralize financial power, but with growing institutional control, some fear that it may shift influence back to the very entities that Bitcoin was intended to circumvent.
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