BlackRock (BLK, Financial) Chairman and CEO Larry Fink recently highlighted the growing legitimacy of Bitcoin, considering it a viable alternative to traditional commodities like gold. During BlackRock's Q3 2024 earnings call, Fink cited significant data points: the BlackRock iShares Ethereum Trust ETF attracted over $1 billion in net inflows within two months of its launch, and the iShares Bitcoin Trust ETF's size expanded to $23 billion in the first nine months of the year.
Fink expressed his support for Bitcoin as a legitimate investment, emphasizing that digital assets are increasingly recognized globally. He acknowledged Bitcoin as a distinct asset class, comparable to commodities like gold. Furthermore, Fink discussed BlackRock's ongoing efforts to develop new products, marking a substantial shift from his previously skeptical stance on Bitcoin.
When questioned about the impact of the U.S. authorities' welcoming approach to cryptocurrencies, Fink suggested that regulatory reforms might create new opportunities beyond ETFs and custodial services. However, he downplayed the influence of political changes on the digital asset sector, stating that market growth would be more driven by widespread acceptance rather than regulatory developments.
Fink further explored factors influencing the growth of digital assets, placing greater emphasis on transparency, liquidity, and analytics over regulation in market expansion. He drew parallels with the evolution of other financial markets, noting, "I don't really believe it's about regulation; I think it's about liquidity and transparency." Fink asserted that like mortgage and high-yield markets, the digital asset market will expand with improved analysis and data.
