BlackRock CEO agrees that bitcoin has already become an alternative to gold

Larry Fink, CEO of BlackRock investment company, said that the future of cryptocurrencies does not depend on the results of the upcoming US presidential election. He also called bitcoin an alternative to gold.

During BlackRock’s third-quarter 2024 earnings report, Larry Fink was asked about the potential opportunities for his company if the administration of the future US president is more cryptocurrency-friendly. Fink replied that it doesn’t matter who becomes president of the United States, because the acceptance of digital assets in society will grow in any case. This is because financial institutions around the world are looking for ways to diversify their asset allocation.

Fink emphasized that BlackRock is focused on improving access to the cryptocurrency market through exchange-traded products. He mentioned a recently launched exchange-traded fund (ETF) tied to ethereum. The Ishares Ethereum Trust saw net inflows of more than $ 1 billion in its first two months of trading, following the earlier launch of the Ishares Bitcoin Trust, which grew to $ 23 billion in its first nine months.

«We believe that bitcoin is an asset class in itself. It has already become an alternative to other commodities and even gold. I don’t believe that cryptocurrencies will be entirely dependent on regulation. Liquidity and transparency are much more important. It’s no different from what happened many years ago when we launched the mortgage market — at that time, there were high-yield bonds,» said the BlackRock CEO.

Fink also commented on global trends in the creation of central bank digital currencies (CBDCs), especially in emerging markets such as India and Brazil. According to his forecast, blockchain, especially in combination with artificial intelligence (AI) and improved analytics, will contribute to the development of the financial sector as a whole.