BlackRock Inc (NYSE:BLK) CEO Larry Fink was skeptical about the prospects of Bitcoin (CRYPTO: BTC) for years, but he remained open-minded and eventually came to believe it was a legitimate financial tool. Now he considers himself a "major believer."
What To Know: On Monday on CNBC's "Squawk On The Street," Fink admitted he had been a skeptic of bitcoin for years, but after studying and learning about it, he acknowledged his previous opinion was wrong.
Fink now considers bitcoin a legitimate financial instrument that offers potentially uncorrelated returns.
IShares Bitcoin Trust (NASDAQ:IBIT) has grown to become the biggest spot bitcoin ETF, bringing in more than $18 billion since its launch in January.
The BlackRock CEO told CNBC that bitcoin is a financial instrument that may get more attention when investors are "frightened." Political uncertainty and rising government debt are a couple of reasons investors may want to consider bitcoin, he said, calling it "digital gold."
"I do believe there's a real need for everyone to look at it," Fink said. "I'm a major believer that there's a role for bitcoin in portfolios ... I think there's a great industrial use for it, and I think a lot of people are missing that."
BlackRock's IBIT has soared in popularity, likely due to its lower fees compared to competitors and the fact that BlackRock is the world's largest money manager. The firm has also filed to potentially launch an ETF for Ethereum (CRYPTO: ETH), the world's second-largest cryptocurrency by market cap after bitcoin.
In a post on X following Fink's appearance, Bloomberg Senior ETF analyst Eric Balchunas noted the potential impact of Fink giving "full throated endorsements of bitcoin as a legit asset class."
"Buy in from BlackRock – as well as other legacy firms like Fidelity – gives boomer advisors comfort and cover to make the allocation," Balchunas said, adding that he believes betting against the success of spot bitcoin ETFs is a "dumb" move.
$BTC Price Action: Bitcoin was up about 5.9% over a 24-hour period, hovering around $63,782 at publication time, according to Benzinga Pro.
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