In the latest annual letters, BlackRock CEO Larry Fink revealed that BlackRock now considers Bitcoin a gold option. It came as the firm reportedly engages institutional investors in talks of investment in the cryptocurrency space. BlackRock’s bullish outlook on Bitcoin and Ethereum shows that more institutions are warming up in the digital currency.
Fink’s comments were made during an earnings call where he outlined BlackRock’s current and future strategies in cryptocurrency investment. Notably, the firm launched a Bitcoin ETF earlier this year that helped boost Bitcoin’s price and set a new record high. The firm then launched an ETF that tracked Ethereum, and while this did not draw as much attention, it was considered successful.
Moreover, the CEO compared digital assets and the $11 trillion mortgage market. Initially, the mortgage market experienced slow growth; however, it expanded significantly following improvements in data analytics. According to Fink, quite the same trend could be expected from cryptocurrencies, which apparently will have a rosy outlook if they were under BlackRock’s stewardship.
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Furthermore, there have been massive inflows in Bitcoin ETFs recently, where BlackRock’s own IBIT ETF has seen a $79.5 million fund inflow, ranked third in total fund inflow. On the other hand, Fidelity’s FBTC managed $239.3 million and was followed by Bitwise’s BITB with $101.1 million. Since their inception, these inflows were some of the biggest for Bitcoin ETFs and showed that investors recognized cryptocurrencies as a proper asset class.
Investor Confidence Boosts Cryptocurrency Market
The huge demand for cryptocurrency ETFs indicates an increasing trend in investors’ digital asset demand. This is also evidenced by the large inflows witnessed on 14th October, which marked a landmark in the growth of this market.
In giving accrued opportunities for the development of structured products such as ETF, BlackRock, the world’s largest investor, is likely to push for adopting digital currencies into the conventional investment world. That is, the firm’s actions as it seeks to invest in these frontiers may significantly create a domino effect that sees other institutions invest in cryptocurrencies, stabilizing this market to maturity.
As a result, the cryptocurrency market continues to expand, aided by the assistance of large financial organizations such as BlackRock, who see digital assets’ potential to alter the investment environment.
Also Read: BlackRock commends Bitcoin as the global monetary option in the rising Fiat anxiety
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.