BlackRock CEO Larry Fink has expressed strong support for Bitcoin (BTC), describing it as a legitimate financial instrument that particularly appeals to those with a pessimistic view of global affairs. In an interview with CNBC, Fink, who called himself a “major believer” in Bitcoin, emphasized its value as an investment during uncertain times. “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 endorsement of Bitcoin comes in the wake of a failed assassination attempt on former President Donald Trump at a campaign rally in Pennsylvania, which resulted in one death and two critical injuries. The political turmoil spurred Bitcoin to reach its highest level in weeks. Rich Rosenblum, co-founder of trading firm GSR, noted that political volatility often boosts Bitcoin purchases, underscoring the fragility of the current political landscape.
BlackRock, the world’s largest asset manager, recently achieved a record $10.65 trillion in assets under management (AUM) as of June 30. This milestone, reached six months after launching the iShares Bitcoin Trust (IBIT) in January, surpassed the company’s $10.2 trillion estimate for the second quarter. BlackRock’s Q2 earnings report highlighted a significant influx of $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 Fink’s personal optimism, he acknowledged that BlackRock’s recent aggressive foray into the crypto space reflects 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.
Fink’s remarks and BlackRock’s strategic moves underscore the growing recognition of Bitcoin’s role in the financial landscape, particularly as a hedge against global uncertainty and political instability.
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