An article reviewing the changing stance of BlackRock founder on cryptocurrencies

Original translation: Wu said blockchain

Larry Fink is the CEO and co-founder of BlackRock, the worlds largest asset management company. Born in 1952, Fink received a bachelors degree in political science and an MBA from UCLA. He began his career at First Boston in 1976 and later achieved early success developing mortgage-backed securities (MBS). In 1988, he founded BlackRock and grew it into a global giant that manages trillions of dollars in assets.

His attitude towards Bitcoin and cryptocurrency can be divided into the following stages:

1. Early Views (2017-2018): Skepticism and Criticism

In the early years, Fink was highly skeptical of Bitcoin. In 2017, he called Bitcoin an index of money laundering, indicating his concerns about its connection to illegal activities. During this period, Fink and BlackRock generally took a negative attitude towards cryptocurrencies and focused more on traditional financial instruments.

“Bitcoin is just a manifestation of the world’s need for money laundering, that’s all.”

2. 2018-2020: Gradually paying attention with caution

While still cautious, Fink has come to acknowledge the potential of blockchain technology and the growing interest in cryptocurrencies. However, he still does not believe Bitcoin is a legitimate financial asset, viewing it primarily as a speculative and high-risk investment.

“While Bitcoin and cryptocurrency remains a highly speculative market, we cannot ignore the technology behind it.”

“Cryptocurrency remains a speculative instrument. The technology behind it could potentially transform the entire financial system, but Bitcoin itself has yet to prove its viability as a currency.”

“Bitcoin has attracted a lot of attention, but we still need to see how stable it is in the long term.”

“We are seeing more and more people around the world showing interest in Bitcoin, especially in countries with unstable currencies.”

“Bitcoin’s volatility is one of its biggest issues, making it difficult to use as a reliable store of value.”

3. 2021: Shift to Bitcoin Acceptance

By 2021, Finks stance began to soften. He recognized the growing institutional interest in Bitcoin and acknowledged its potential as a financial instrument. During this period, BlackRock began to include Bitcoin futures in some of its funds, marking a major shift in its attitude towards the asset class.

“Bitcoin has captured the interest and imagination of many people.”

“I believe Bitcoin has the potential to become a global asset, which is why we are now paying more and more attention to it.”

“Market volatility is a reminder that Bitcoin and other cryptocurrencies are still in the early stages of their development and require more maturity and stability.”

4. 2022: Acceptance of Bitcoin as “digital gold”

In 2022, Fink publicly acknowledged Bitcoin as digital gold, a term often used by Bitcoin enthusiasts. He noted that Bitcoin has the potential to disrupt the financial industry, although he emphasized the importance of regulations and infrastructure to support its development. This year marked a turning point, and BlackRock began to actively explore Bitcoin-related products.

“Bitcoin has the potential to revolutionize the financial industry.”

“We need a clearer regulatory framework to ensure the long-term sustainability of the cryptocurrency market.”

“While Bitcoin may not replace fiat currencies, it does offer investors a different investment option, especially amid increased global economic uncertainty.”

5. 2023: Launch of Bitcoin ETF

In 2023, BlackRock attracted widespread attention by applying for a Bitcoin exchange-traded fund (ETF). Fink reiterated his view that Bitcoin can disrupt the financial industry and emphasized that it can be used as a hedge against inflation and currency depreciation. The move reflects BlackRocks efforts to develop a broader strategy by taking advantage of institutional investors growing interest in digital assets. When asked how much he thinks Bitcoin will be worth in the future, Larry Fink said: What is the value of human freedom?

“The future of cryptocurrencies lies in how they are integrated into the existing financial system, not as standalone systems.”

“Bitcoin is becoming a global asset class and it’s something that we should all be paying attention to.”

“As we see increased uncertainty in the global economy, assets like Bitcoin could play an important role in providing investors with a non-correlated safe-haven option.”

6. 2024: Fully accepting Bitcoin into investment portfolios

Fink fully embraced Bitcoin, calling it a legitimate financial instrument by 2024. He highlighted Bitcoins potential in providing non-correlated returns and its role as a safe haven asset during times of economic uncertainty. Fink said Bitcoin could be particularly valuable in countries with unstable currencies, or where individuals seek financial autonomy outside of government control. BlackRocks Bitcoin ETF has gained notable ground due to strong client demand, further solidifying the companys commitment to the cryptocurrency space.

“We are now seeing more and more institutional investors viewing Bitcoin as a safe-haven asset similar to gold, especially during periods of market turmoil.”

“Bitcoin is a legitimate financial instrument that can provide non-correlated returns in an environment of fear. In certain countries, if you are fearful about your daily life, Bitcoin provides some level of financial control.”

“Bitcoin may be more than just ‘digital gold’, it may become part of the global financial infrastructure, and we are carefully studying its potential.”