As an experienced financial analyst who has closely followed the evolution of Bitcoin and the crypto market, I have always been intrigued by Larry Fink’s transformation from a skeptic to a believer in this new asset class. Having watched his interviews over the years, I remember him dismissing Bitcoin as an “index of money laundering” back in 2017. His recent admission that he was wrong to be a skeptic before properly studying the asset class is a testament to the importance of keeping an open mind and staying informed.


On Monday, Larry Fink, CEO of BlackRock, admitted that he had been too critical of Bitcoin and cryptocurrencies in the past, explaining that he had not given the asset class a thorough examination prior to his criticisms.

The investment manager’s firm recently released Q2 financial reports, revealing a remarkable $10.65 trillion in assets under management (AUM). This significant growth can be attributed in part to the successful launch of its Bitcoin Exchange-Traded Fund (ETF) back in January, which attracted substantial inflows.

Larry Fink’s Bitcoin Awakening

“I used to be firmly against it, having delved into the subject myself and formed a strong opinion,” I admitted during my conversation with Jim Cramer on CNBC recently. “But after conducting thorough research and gaining new insights, I now acknowledge that my previous stance was misguided.”

In 2017, Fink labeled Bitcoin as a “reflection of money laundering,” viewing it as Bitcoin’s primary application. However, during their encounter in 2021, Scaramucci reported that Fink continued to dismiss Bitcoin as “foolish” or “stupid.”

As a researcher looking back two years into the past, I’ve discovered an intriguing turn of events in the crypto industry. The Securities and Exchange Commission (SEC), whose chair shares a similar perspective on Bitcoin as Fink once did, has become a relentless pursuer of legal action against crypto companies. This trend began with the filing of lawsuits against Coinbase and Binance, weeks apart in June 2023.

In the opinion of Fink, Bitcoin qualifies as a legitimate financial asset with the capability of providing diversified returns that aren’t typically correlated with traditional markets, despite the fact that its underlying technology may occasionally be misused for illicit activities.

He added, “In my opinion, it’s a tool people turn to when they feel particularly anxious.” This refers to situations where individuals worry that their country’s currency may be devalued due to large budget deficits, as some nations unfortunately experience.

Escaping The Financial System

This statement implies that holding such investments grants individuals the freedom to invest beyond the jurisdiction of their respective governments, thereby enhancing their financial autonomy.

“He firmly expressed his conviction that Bitcoin has a valuable place in investment portfolios. He further emphasized its significant industrial applications, which many seem to overlook.”

Starting from last Friday, BlackRock’s Bitcoin ETF managed a staggering $18.3 billion worth of Bitcoin for its clients, significantly surpassing Grayscale’s $15.7 billion in assets under management (AUM).

According to the data, IBIT has generated approximately $4.4 billion in revenue between the end of Q1 and now, even with Bitcoin’s price decline of around 14% during this period. In the second quarter alone, BlackRock attracted a total inflow of $82 billion across all asset classes.

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2024-07-15 20:29