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    Bitcoin is a ‘Fear-Based Asset’; Further Eases Crypto Position

    Ethan CarterBy No Comments2 Mins Read
    1764801943

    Larry Fink, the chair and CEO of BlackRock, an asset management firm, discussed his significant transition from linking cryptocurrencies with illegal activities to overseeing the largest spot Bitcoin exchange-traded fund.

    During The New York Times’ DealBook Summit on Wednesday, Fink responded to queries about his perspectives on cryptocurrency and Bitcoin (BTC) from journalist Andrew Ross Sorkin.

    The BlackRock CEO remarked that his shift from viewing crypto as synonymous with money laundering to holding billions in BTC represents “a glaring public example of a significant change in [his] opinions.”

    “My thought process is always evolving,” Fink stated.

    The New York Times, Investments, Asset Management, BlackRock
    BlackRock CEO Larry Fink at the DealBook Summit on Wednesday. Source: The New York Times

    While sharing the stage with Coinbase CEO Brian Armstrong, Fink wasn’t wholly optimistic about Bitcoin throughout the discussion. He characterized Bitcoin as “an asset of fear,” pointing out that its price had decreased following news of a US-China trade agreement and a possible resolution to the Ukraine conflict.

    He added:

    “If you bought [Bitcoin] for trading, it’s a highly volatile asset. You need to be exceptional at market timing, which most people aren’t.”

    Fink’s remarks sharply contrast with those from October 2017, prior to Bitcoin’s famous bull run that propelled its price to unprecedented heights. Then, he remarked that the cryptocurrency “illustrates the demand for money laundering in the world.”

    Related: SEC issues warning letters to ETF issuers focusing on extreme leverage

    In the eight years since that statement, BlackRock received regulatory approval from the US Securities and Exchange Commission to initiate one of the first spot Bitcoin exchange-traded funds in January 2024. The iShares Bitcoin Trust ETF, trading under the ticker symbol IBIT, reached a peak valuation of around $70 billion.

    Net outflows for IBIT surged in November

    Cointelegraph reported last month that IBIT faced over $2.3 billion in net outflows during November, including withdrawals of approximately $463 million on Nov. 14 and $523 million on Nov. 18. Nonetheless, BlackRock’s business development director, Cristiano Castro, expressed confidence in ETFs as “liquid and powerful instruments.”