The CEO of Blackrock the largest Asset management firm in the world, Larry Fink, has declared Bitcoin an asset class revealing the motive behind his company’s decision to go big on the asset.
Mr. Fink believes Bitcoin is an important investment vehicle and is an investment alternative to commodities like gold and silver
“ We believe Bitcoin is an asset class in itself, “ said Larry Fink, the CEO of the world’s largest Asset manager.
The statement by Mr Fink was made during a Q3 2024 earnings call where he highlighted his firm’s ongoing innovation around Bitcoin
Mr Fink shared his frank opinion on Bitcoin as an asset class. He downplayed the effect of regulatory changes on the asset while stating that a broader acceptance and more liquidity from Bitcoin will drive market expansion.
Additionally, Fink highlighted Blackrock’s focus on improving market access for its investors through its two exchange-traded funds in Bitcoin and Ethereum.
Blackrock launched an ETF product for Bitcoin and Ethereum both known as IShares Bitcoin Fund (IBIT) and IShares Ethereum Fund (ETHA).
Fink revealed the success of the two ETF products stating that IShares Ethereum has attracted over $1 billion within its first two months of trading while IShares bitcoin has grown to $23 billion within the first nine months.
He added that both ETF products align with Blackrock’s mission to make investing easy and accessible.
“ We will continue to pioneer new products to make investing easier and affordable” Fink Said
On the US election and Regulations
Mr Fink was quizzed further on the effect of a new political administration on Blackrock’s Bitcoin strategy given the November 5 presidential elections
Analyst Ben Budish asked about the impact of a Pro-Crypto adoption on Blackrocks operation.
Larry Fink in response played down the effect of Political changes and regulations on the crypto industry. He stated that the market growth of crypto assets will be driven by the broader acceptance of these assets rather than by rules.
Finally, Mr Fink gave his prediction on the factors that would influence the growth of digital assets.
He harped on the importance of transparency, Liquidity, and Analytics in the growth of the crypto market. He likened the growth of crypto to the evolution of other financial markets in history saying:
I truly don’t believe it’s a function of regulation — of more regulation, less regulation. I think it’s a function of liquidity, transparency … no different than years ago when we started the mortgage market when the high-yield market occurred.
He believes that the digital asset market would mirror the expansion of these other markets as better analytics and data emerge.
Larry Fink runs Blackrock, the world’s largest Asset Management with a majority stake in some of the biggest companies and brands in the world.
Blackrocks two ETF products in Bitcoin and Ethereum have generated several Billions of Dollars from institutional investors.