- Larry Fink has transitioned from a “proud” Bitcoin skeptic to recognizing it as digital gold
- He acknowledged Bitcoin’s legitimacy as a financial instrument, a shift from his 2018 stance
- Fink noted Bitcoin’s utility for those fearing the debasement of sovereign currencies
BlackRock CEO Larry Fink explained yesterday how he has gone from a “proud skeptic” of Bitcoin to a believer in its position as a form of digital gold. Speaking to CNBC, Fink opined that the cryptocurrency has become a “legitimate financial instrument,” marking a distinct shift from 2018 when Fink said that not a single BlackRock client was interested in the crypto sector. Fink added that Bitcoin was more useful for those who are “frightened” that their sovereign currency is being debased, which is in contrast to the monkeymaking focus in more stable countries.
From Money Laundering to Legitimate Financial Instrument
Fink’s first comments on Bitcoin came during the boom of 2017 when he said that its popularity “just shows you how much demand for money laundering there is in the world.” A few months later, while the first swathe of Bitcoin ETFs was being processed (and ultimately rejected) by the Securities and Exchange Commission, Fink noted, “I don’t believe any client has sought out crypto exposure. I’ve not heard from one client who says, ‘I need to be in this.’”
The turning point came in 2020 and 2021, as institutional interest in Bitcoin surged. During this time, Fink acknowledged the shift, stating, “Bitcoin has caught the attention and the imagination of many people.” Three years later, by which time BlackRock was working on its Bitcoin ETF application, he was sold, stating that he believed there was a role for digital currencies in the financial landscape and that Bitcoin was an “international asset.”
No Longer a “Proud Skeptic”
Fink now accepts he has undergone a full shift in sentiment, telling Jim Cramer that Bitcoin is “a legitimate financial instrument that allows you to maybe have uncorrelated type of returns,” noting that he has gone from being “a skeptic, a proud skeptic”:
Fink’s transformation from Bitcoin doubter to Bitcoin believer is one of many such tales, and there will likely be many more to come as the cryptocurrency resolutely refuses to go to zero.
