BlackRock CEO: Bitcoin is ‘digital gold’

BlackRock chairman and CEO Larry Fink said that he believes Bitcoin is a ‘legitimate financial asset class’ for those seeking financial control outside traditional systems.

Once a skeptic, Fink now views Bitcoin (BTC) as a legitimate asset class.  

“As you know, I was a skeptic. I was a proud skeptic,” Fink told CNBC. “I studied it, learned about it, and I came away saying, ‘Okay, my opinion five years ago was wrong.’” 

Fink highlighted Bitcoin’s potential for uncorrelated returns and its role as a hedge against currency debasement and geopolitical instability.

“I look at it as digital gold, as I said before, and I do believe there’s a real need for everyone to look at it as an alternative to, I would say, the optimism that I have in the world,” Fink said. 

Uncertainty

Fink acknowledged Bitcoin’s industrial uses and appeal in uncertain times, signaling a shift in institutional perspectives on cryptocurrency. He highlighted that many people invest in the currency out of fear and a lack of trust in their country’s institutions.

“I look at it as a vehicle in which you’re expressing your your financial acumen in something that you’re more frightened of the world. You’re more frightened of your existence,” Fink said. 

On July 6, the BlackRock CEO said he hopes to democratize Bitcoin and other cryptocurrencies, making them more accessible and affordable for investors.

In March, BlackRock took a step towards incorporating Bitcoin by filing with the SEC to include Bitcoin ETFs in its Global Allocation Fund. According to the filing, the fund was planning on purchasing shares in exchange-traded products (ETPs).