BlackRock CEO Larry Fink Endorses Bitcoin as Crisis Protection Asset
BlackRock CEO Larry Fink has emerged as a prominent advocate for Bitcoin, viewing it as a crisis protection asset and an international instrument to overcome local fears about currency devaluation or political instability.
Fink's stance on Bitcoin has evolved over time. Initially a critic in 2017, he changed his view after studying it closely. He now describes Bitcoin as 'digital gold' and an asset greater than any government. Fink advises clients to include Bitcoin in a conservative stocks-bonds portfolio, suggesting a 1 to 2 percent weighting.
The world's largest asset manager has seen significant interest in Bitcoin. Its Bitcoin ETF, iShares Bitcoin Trust, reached $50 billion in assets faster than any other ETF. Fink discussed optimal Bitcoin allocations with a sovereign wealth fund, suggesting a 2 to 5 percent allocation could lead to a $500,000 to $700,000 Bitcoin price. At this price, Bitcoin's market capitalization would be over $14 trillion, comparable to gold's current market capitalization. The approval of Bitcoin spot ETFs in the US has also driven institutional interest, with cumulative net inflows of over $36 billion in their first year.
Larry Fink's endorsement of Bitcoin as a crisis protection asset signals growing acceptance among institutional investors. As Bitcoin's market capitalization nears that of gold, its role in diversified portfolios continues to gain traction.
