The financial giant's IBIT is the world's largest spot Bitcoin ETF
BlackRock $BLK’s co-founder and CEO Larry Fink is now embracing crypto more than ever. In an interview with CNBC on Monday, he mentioned that he had abandoned his initial skepticism of cryptocurrencies like Bitcoin. He now firmly believes that there is a place for crypto in the average investor’s portfolio.
“I believe Bitcoin is legitimate. I’m not saying there aren’t misuses like everything else, but it is a legitimate financial instrument that allows you to have uncorrelated returns,’’ Fink told CNBC host Jim Cramer.
When asked whether the U.S. budget deficit makes a case for investing in crypto, Fink responded, “absolutely.” He added that crypto can help buyers hedge against countries that are devaluing their currencies.
After receiving approval from the Securities and Exchange Commission for spot Bitcoin ETFs in the U.S., BlackRock’s iShares group launched the iShares Bitcoin Trust (IBIT) earlier this year. IBIT is the largest spot Bitcoin exchange-traded fund, holding more than $18 billion in assets.
After the launch of IBIT, Fink has consistently expressed optimism about Bitcoin, stating that IBIT is the fastest-growing ETF in history and has accumulated assets at an unprecedented pace. Fink is optimistic about Ether ETFs, too. He said earlier this year an ETH ETF is possible even if the SEC treats Ether like a security.
The financial giant launched its first tokenized fund on the Ethereum blockchain in March. The BlackRock USD Institutional Digital Liquidity Fund, also known as BUIDL, is fully collateralized by cash, U.S. Treasury bills, and repurchase agreements. It provides qualified investors with an opportunity to earn U.S. dollar yields.
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