Larry Fink, chairman and CEO of Blackrock, the world's largest asset manager, recently highlighted the growing legitimacy of Bitcoin as an alternative to other commodities such as gold.
During BlackRock's third-quarter 2024 earnings call, Fink listed two sets of data: BlackRock's ishares Ethereum Trust exchange-traded fund (ETF) attracted more than $1 billion in net inflows within two months of its listing, while the ishares Bitcoin Trust ETF grew to $23 billion in the first nine months of this year.
He noted that the products fit into BlackRock’s broader goal of making investing easier and more affordable for investors around the world.
Fink expressed support for Bitcoin as a legitimate means of investment, emphasizing, “I believe that the utilization of assets will become more and more a reality around the world. We believe that Bitcoin is an asset class in its own right, and it is an alternative to other commodities such as gold.”
At the same time, Fink also mentioned that BlackRock will continue to explore new product ideas. Fink's bold bet on Bitcoin is in stark contrast to his skeptical attitude in previous years.
When asked about the potential impact of the friendly attitude of US authorities towards cryptocurrencies, Fink said that regulatory reforms could bring new opportunities beyond BlackRock's ETF and custody services. But Fink also downplayed the impact of future political changes on the digital asset sector, believing that market growth will be driven more by the fact that these assets are widely accepted rather than by regulation.
Fink also further explored the factors that affect the growth of digital assets. Compared with the promotion of regulation, Fink emphasized the importance of transparency, liquidity and analysis in market expansion.
“I don’t really believe this is a function of regulation, I think it’s a function of liquidity and transparency,” he said, drawing a comparison with the evolution of other financial markets.
He believes that like the mortgage market and high-yield market, the digital asset market will expand with the emergence of better analysis and data.
