During BlackRock’s third quarter call, CEO Larry Fink expressed strong approval of Bitcoin and digital assets. Fink’s comments not only emphasized Bitcoin as a private asset class but also aligned its growing importance with historical financial markets such as the now $11 trillion mortgage and high-yield bonds.
BlackRock CEO praises Bitcoin
“We believe that Bitcoin is an asset class in itself,” Fink said bluntly. “It’s an alternative to other things like gold.” He also pointed out that BlackRock is working with institutions around the world regarding the distribution of digital assets. “Discussions we have with institutions around the world [are] in terms of how they should think about digital assets, what kind of distribution of assets should be there,” he explained.
Fink emphasized the inevitability of digital goods becoming a global reality: “I believe that the use of digital goods will become more and more real worldwide.” Drawing parallels to the early days of mortgages and high-yield markets, Fink suggested that digital assets are on the same path of growth and adoption.
“Years ago, when we started the housing market, years ago when the high yield market happened, [they] it started slow but it built up as we developed better statistics and data,” he recalled. “With better analytics and data, more adoption and market expansion [occurred]. I really believe that we will see an increase in the market for these digital goods.”
Contrary to the common narrative that law is the main barrier to the adoption of digital assets, Fink argued that other factors are more important. “I really don’t believe it’s a job of regulation, more regulation, less regulation,” he asserted. “I think it’s a job to spend money, to be transparent, and in that way, it’s no different than when you […] build better analytics and data.”
Fink also highlighted the transformative potential of blockchain technology and artificial intelligence in expanding digital asset markets. “We believe that the technology of these blockchains will be very additive,” he said. “After that you will cover AI, and having better data analysis, performance and expansion of these markets will happen.”
In addition to Bitcoin, Fink specifically spoke about Ethereum, noting its potential for significant growth: “I think that the use of this type of investment will be extended to the role of Ethereum as the blockchain can grow even more.”
Speaking about the digitalisation of the country’s finances, Fink made a distinction between digital assets such as Bitcoin and central bank digital currencies (CBDCs). “How does each country view its digital currency? That is a very different asset than Bitcoin itself,” he clarified. “We’re seeing a lot of success in India, Brazil in their digitalization for a variety of reasons.”
When talking about the possible impact of the US presidential election on Bitcoin and the entire crypto market, Fink was dismissive of any significant outcome. “I’m not sure that the President or any other candidate would make a difference,” he noted, suggesting that other markets are prime for adoption.
At press time, BTC traded at $65,600.
The featured image was created with DALL.E, a chart from TradingView.com