- iShares Bitcoin Trust (ticker IBIT) is the fastest-growing ETF in history.
- Larry Fink thinks Bitcoin is an institutional investment and its market appeal will inevitably grow.
- BlackRock holds the largest amount of real BTC among all approved spot Bitcoin ETF participants.
The CEO of the world’s largest asset manager, Larry Fink of BlackRock, has recently shifted his stance on Bitcoin, following the same trajectory of narrative and sentiment changing over time from other industry leaders.
The turning point for Fink’s stance towards Bitcoin was sparked by the performance of the iShares Bitcoin Trust (ticker IBIT), which already became the fastest-growing ETF in history with the $13.5 billion in flows that occurred during the first 11 weeks of trading.
IBIT is the fastest-growing ETF in the history of ETFs. Nothing is gaining assets as fast as IBIT in the history of ETFs
Larry Fink, CEO of BlackRock
A few years ago, Fink described Bitcoin as ‘an Index of Money Laundering’. His dismissive description reflected the strong skepticism towards the king of cryptocurrencies and its ability to attract institutional investors at the time.
Bitcoin is a Revolutionary Technology that is Disrupting Traditional Finance
Just a few years later, Fink is now singing the praises of Bitcoin’s future as a reflection of how the technological revolution is disrupting legacy companies. He notes that it is a clear testament to the ongoing process of institutional acceptance and validation of Bitcoin as a legitimate asset class.
In early March 2024, the American financier told Bloomberg that all signs are pointing to Bitcoin securing its future as one of the most successful assets of the 21st century.
Our view of Bitcoin has evolved.
Larry Fink, CEO of BlackRock
Fink’s narrative has evolved in the direction of increasing legitimization, greater understanding of Bitcoin, and gradual integration into traditional finance.
Fink further now believes that Bitcoin is an institutional investment and its market appeal will inevitably grow.
In the past, Bitcoin was heavily associated with illicit activities due to its reliance on decentralization and anonymous nature. The skepticism Fink displayed about Bitcoin (BTC) reflected the skepticism of most traditional investors and financial institutions at the time.
Today, Bitcoin has adapted to play by the rules of traditional finance that it once sought to disintermediate.
In light of the changing landscape, Fink is now able to tick all the boxes that make a Bitcoin investment feel ‘very comfortable’. Some of the factors that have changed Fink’s mind on Bitcoin include the exponential Bitcoin market growth, increased market liquidity, and transparency.
He notes that the asset has succeeded in creating and expanding its own market liquidity, which surprised him more than anything else.