New York, NY – BlackRock (BLK) CEO Larry Fink has reaffirmed his stance on Bitcoin, urging investors to consider adding the cryptocurrency to their portfolios.
“My opinion five years ago was wrong,” Fink admitted in an interview with CNBC. “I believe Bitcoin is a legitimate financial instrument.”
Fink’s remarks followed BlackRock’s impressive second-quarter earnings, which surpassed analyst expectations. The asset management giant reported a 13% year-over-year increase in assets under management (AUM), reaching $10.6 trillion.
A notable component of BlackRock’s AUM is the iShares Bitcoin Trust (IBIT), launched in January. The trust has swiftly amassed over $18 billion, including $4 billion in the second quarter alone.
Fink emphasized Bitcoin’s potential for uncorrelated returns and financial control, advocating for its inclusion in diversified portfolios. “It is an instrument that you invest in when you’re more frightened,” Fink stated. “It is an instrument when you believe that countries are debasing their currency by excess deficits.”
He concluded by underscoring the necessity for investors to view Bitcoin as a viable alternative, saying, “There’s a real need for everyone to look at it as one alternative.”
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