BlackRock CEO Larry Fink: Bitcoin Now Rivals Gold as a Top Asset Class

• Larry Fink, CEO of BlackRock, has stated that he thinks Bitcoin is becoming its own class of asset and that its growth will not be affected by the US elections.
• BlackRock’s spot Bitcoin ETF has grown to $23 billion in nine months, and institutional interest in Bitcoin has grown.

Larry Fink, CEO of BlackRock, is clear in his belief that Bitcoin is on the path to becoming a standalone asset class. He views it as not being influenced by the forthcoming US elections, arguing that neither of the candidates is likely to make a major difference in its development. Fink made the remarks during BlackRock’s third-quarter earnings call, suggesting that the company is becoming more optimistic about Bitcoin.

“Bitcoin will become as big as the US housing market”
— Larry Fink.

That market is currently 50 Trillion. Let’s estimate 100 Trillion by 2040. That is 76x Bitcoin’s 1.3 Trillion market cap.

In other words, Bitcoin is going to 5 Million. Source: the most important person in…

— Fred Krueger (@dotkrueger) October 14, 2024

BlackRock, the world’s largest asset manager, has placed a big bet on Bitcoin. The company’s spot Bitcoin ETF, which was launched in January, has been a big hit. It was launched only nine months ago and has managed to reach an astonishing $23 billion in assets. This growth shows how institutional buyers are turning to Bitcoin, with BlackRock leading the charge in promoting Bitcoin as an investment vehicle.

Fink likened Bitcoin to other Wall Street financial products that were once ignored and gradually blossomed, including mortgage and high-yield bonds. Since the beginning of the year 2021, he has changed his view on cryptocurrency, especially when he was seen discrediting it alongside the JPMorgan CEO. However, there is no denying that Fink is bullish.

Bitcoin ETFs Break Inflow Records 

Bitcoin ETFs have been seeing record inflows, which only adds more weight to their presence in the market. The U.S. spot Bitcoin ETFs recorded $555.9 million inflows in the recent past, the highest inflow since June this year. This surge took Bitcoin’s price to a two-week high of $66,500, indicating that investors are gaining more confidence in the cryptocurrency.

This trend has not gone unnoticed, and experts have started to take notice. According to Nate Geraci, president of ETF Store, the recent inflows have been ridiculous in the context of initial demand expectations. The net inflows of Bitcoin ETFs have reached nearly $20 billion in the last ten months, which is a clear signal that more and more institutional investors are interested in Bitcoin.

Eric Balchunas, the senior ETF analyst at Bloomberg, has also compared Bitcoin ETFs to gold-based products, saying that while gold is the trusted safe-haven asset, Bitcoin is making a strong bid for that position. Gold ETFs have only seen $1.4 billion worth of net inflows this year, while Bitcoin ETFs have attracted over $19 billion.

Bitcoin Challenges Gold’s Status as Safe-Haven Asset

There is a growing trend of institutional investors investing in Bitcoin thus making the difference between Bitcoin and gold small. This is an indicator that shows the increasing relevance of Bitcoin as an asset that offers refuge in the face of geopolitical risks. 

The largest inflow was reported by Fidelity Wise Bitcoin Origin Fund (FBTC) with $239.3 million, while Bitwise’s Bitcoin ETF (BITB) attracted more than $100 million. BlackRock’s own iShares Bitcoin Trust (IBIT) witnessed an inflow of $79.6 Million. Other Bitcoin ETFs like the ARKB and GBTC also witnessed an inflow.

Standard Chartered has forecasted that Bitcoin will surge past $200,000 by 2025, regardless of the result of the upcoming US presidential election. This bullish trend is backed up by the institution’s growing interest and the evolution of Bitcoin as a financial instrument.

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