BlackRock CEO: Bitcoin Is Alternative to Gold

by

As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed the rise and fall of countless trends and assets. From the dot-com bubble to the housing crisis, I’ve seen it all. However, the recent developments in the digital asset market, particularly Bitcoin and Ethereum, have caught my attention like never before.

On a recent conference call discussing earnings, BlackRock’s CEO, Larry Fink, expressed that his organization considers Bitcoin as a possible substitute for gold.

According to Fink, BlackRock is actively discussing with several organizations regarding possible placements (or allocations).

Significantly, Fink indicates that the use of this type of investment could potentially be extended to Ethereum as well.

In January, BlackRock launched its high-flying Bitcoin ETF, helping to propel the price of the flagship cryptocurrency to its current record high. In July, it also went on to launch an Ethereum ETF. While the latter attracted relatively modest inflows, it is still considered to be a moderate success. 

Digital assets and the mortgage market 

Significantly, Fink has made comparisons between digital assets and the $11 trillion mortgage market. He pointed out that digital assets had a sluggish beginning, but BlackRock expanded the market significantly thanks to improved analytics and data. Fink believes this trend will also occur with cryptocurrencies.

Bitcoin ETFs see massive inflows 

Fink’s recent statement coincided with Bitcoin ETFs recording massive inflows. On Monday, they attracted as much as $550 million worth of fresh money. BlackRock’s IBIT attracted $79.5 million worth of inflows, finishing in third place. Fidelity’s FBTC ended up being in first place with $239.3 million. Bitwise’s BITB was in a distant second place with $101.1 million. 

Oct. 14 turned out to be one of the best days for these products since their debut in January. 

Read More

2024-10-15 09:20