BlackRock’s Larry Fink says he’s a ‘major believer’ in bitcoin

Bitcoin has the potential to be a way for everyday investors to guard against significant government turmoil, according to the head of the world’s biggest asset manager. BlackRock CEO Larry Fink told CNBC’s ” Squawk on the Street ” that he sees a future for bitcoin after previously being a ” proud skeptic ” of the cryptocurrency. “I’m a major believer that there’s a role for bitcoin in portfolios,” Fink said Monday, calling it “digital gold.” BlackRock has become a significant player in crypto. The firm’s iShares Bitcoin Trust (IBIT) has raked in more than $18 billion since its launch in January, making it the biggest bitcoin exchange-traded fund. The firm has also filed to potentially launch an ether ETF. Fink said political risk and rising government debt are some of the reasons for investors to own bitcoin. “I’m not trying to say there’s not misuses, like everything else, but it is a legitimate financial instrument that allows you to have non-correlated type of returns,” Fink said. “I believe it is an instrument that you invest in when you’re more frightened though. It is an instrument for when you believe countries are debasing their currencies by excess deficits, and some countries are.” Bitcoin bulls have long pointed to the threat of inflation and government insolvency as reasons to buy the cryptocurrency. Bitcoin is up sharply since the Covid-19 pandemic, which saw massive government spending and a worldwide increase in inflation. BTC.CM= 5Y mountain Bitcoin has hit record highs in 2024. However, there have been times over the past few years where bitcoin has seemed to trade in lockstep with the Nasdaq Composite , which would suggest it is more of a risk-on asset. Fink said even outside of bitcoin, he sees rising public spending as one of the biggest issues facing the world. “The public deficits are just growing too fast as a percentage of GDP,” Fink said.