During a recent CNBC interview, BlackRock CEO Larry Fink admitted he was “wrong” about Bitcoin, now recognizing it as “digital gold” and a “legitimate” financial instrument.
Speaking with CNBC’s Jim Cramer, Fink said, “I was a skeptic, a proud skeptic,” but his perspective changed after studying the decentralized asset.”
He acknowledged Bitcoin’s potential for uncorrelated returns, stating, “It is a legitimate financial instrument that allows you to maybe have uncorrelated type of returns.
“I believe it is an instrument that you invest in when you’re more frightened, though. It is an instrument when you believe countries are debasing their currency by excess deficits, and some countries are.”
Fink highlighted the economic and political instability in certain countries, suggesting that Bitcoin offers an alternative investment opportunity beyond local geographies for individuals in those regions.
In May, BlackRock’s iShares Bitcoin Trust (IBIT) surpassed Grayscale Bitcoin Trust (GBTC) to become the world’s largest Bitcoin exchange-traded investment fund.
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By July 15, IBIT’s year-to-date inflows had exceeded $18 billion.
The asset manager also incorporated shares of the Bitcoin ETF into its Strategic Income Opportunities Fund (BSIIX) and the Strategic Global Bond Fund (MAWIX), emphasizing Bitcoin’s potential benefits for income-focused investors, including retirees.
CoinShares’ most recent inflows data, released on July 15, showed that Bitcoin investment vehicles recorded their fifth-highest week of inflows, with over $1.35 billion invested in a single week.
Bitcoin’s price reacted positively to Fink’s comments and other bullish developments, including the German government selling its final Bitcoin holdings, which had been creating significant selling pressure by dumping 50,000 coins on the market.
The decentralized asset saw four consecutive days of gains, with the nine-day exponential moving average crossing back over the 200-day exponential moving average.
This technical movement reversed several weeks of negative price action, pushing Bitcoin back above the $60,000 mark.
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