Larry Fink of BlackRock Now Believes Bitcoin Is a 'Legitimate Financial Instrument'

The latest statement by Larry Fink hinted that he is eagerly waiting for big pumps in the trade price of Bitcoin (BTC).

BlackRock CEO Larry Fink seems to be hinting at a bright future for Bitcoin (BTC) price action with his latest statement.

Fink, whose leadership at BlackRock, along with another digital asset fund manager Grayscale, played a pivotal role in attempts to launch Bitcoin spot ETF products on the American stock market, was once a vocal critic of Bitcoin. Seven years ago, Fink went as far as to label Bitcoin as an “index of money laundering.”

However, in a recent interview with CNBC, the BlackRock CEO had a different tune when discussing Bitcoin (BTC). Fink expressed his conviction that Bitcoin is a legitimate financial instrument capable of delivering uncorrelated returns. He went on to highlight that Bitcoin is an asset that people tend to gravitate towards during periods of fear, adding that he is a strong believer in the role of Bitcoin within investment portfolios.

The statement from Fink comes amidst reports that BlackRock is preparing to launch a spot Bitcoin exchange-traded fund (ETF) in the United States, following the approval of several futures-based ETFs by the Securities and Exchange Commission (SEC) in 2021.

The launch of a spot ETF would mark a significant step in the integration of cryptocurrencies into mainstream finance and could potentially drive up demand for BTC. However, it is important to note that the SEC has yet to approve any spot Bitcoin ETFs, and there is no guarantee that BlackRock's application will be successful.

Fink's stance on Bitcoin and cryptocurrencies has shifted over the years. In late 2023, Fink changed his tune following BlackRock’s disclosure of plans to launch Bitcoin spot ETF products.

In 2018, Fink called Bitcoin speculative and said that its popularity was more driven by speculation than sound financial fundamentals. At the time, he highlighted that BlackRock had no interest in dealing with Bitcoin due to its volatility.

In the same year, Fink argued that its usefulness in everyday transactions was limited and questioned its long-term sustainability as a reliable store of value. Later, the BlackRock CEO raised concerns about the lack of regulatory oversight around Bitcoin and other cryptocurrencies. Taking all these factors into account, Fink stated that without proper regulation, BlackRock would not consider Bitcoin a suitable investment for its clients.

Also read: PayPal Executive Declares Ethereum Unfit for Payments, Enderses Solana as Superior Solution

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