BlackRock’s Larry Fink Admits He Was Wrong, Now Calls Bitcoin “Digital Gold”
YEREVAN (CoinChapter.com)—In a recent CNBC interview, Larry Fink, CEO of BlackRock, admitted his previous skepticism about Bitcoin. Fink now sees it as “digital gold” and a legitimate financial instrument. He told CNBC’s Jim Cramer that he was a skeptic, a proud skeptic, but changed his mind after studying it.
Fink described Bitcoin as an instrument for uncorrelated returns, especially during economic uncertainty. He said it’s useful when countries debase their currency through excessive deficits.
“It is an instrument that you invest in when you’re more frightened,”
Fink noted, emphasizing Bitcoin’s role in troubled economies.
Fink’s comments mark a significant shift for BlackRock, the world’s largest hedge fund, managing $10.6 trillion in assets. His support for Bitcoin is a major endorsement for the cryptocurrency.
BlackRock’s Bitcoin Trust Becomes Largest, Sees Massive Inflows
In May, BlackRock’s iShares Bitcoin Trust (IBIT) overtook Grayscale Bitcoin Trust (GBTC) as the largest Bitcoin exchange-traded investment fund.
As of July 15, IBIT saw year-to-date inflows exceeding $18 billion, reflecting growing investor interest.
BlackRock integrated Bitcoin ETF shares into its Strategic Income Opportunities Fund (BSIIX) and Strategic Global Bond Fund (MAWIX). This move highlights Bitcoin’s benefits for income-focused investors, such as retirees, who seek to diversify their portfolios with uncorrelated assets.
Recent CoinShares data released on July 15 showed significant inflows into Bitcoin investment vehicles. The fifth-highest week of inflows was recorded, with over $1.35 billion in investments.
Bitcoin Surges After Germany Sells Final Holdings
Bitcoin’s price responded positively to Larry Fink’s endorsement and other favorable developments. The German government’s recent decision to offload its final Bitcoin holdings removed significant selling pressure from the market. The offloading of 50,000 coins had previously kept Bitcoin’s price suppressed.
Following these events, Bitcoin’s price rose for four consecutive days. Technical indicators also turned positive, with the nine-day exponential moving average crossing above the 200-day exponential moving average.
The technical shift signaled a reversal of several weeks of negative price action, pushing Bitcoin back above the $60,000 mark.
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