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    Bitcoin is a ‘Fear Asset’; Eases Crypto Position

    Ethan CarterBy No Comments2 Mins Read
    Bitcoin is a 'Fear Asset'; Eases Crypto Position

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

    During his remarks at The New York Times’ DealBook Summit on Wednesday, Fink responded to inquiries regarding his stance on cryptocurrency and Bitcoin (BTC) posed by journalist Andrew Ross Sorkin.

    The BlackRock CEO remarked that his transition from viewing crypto mainly as a facilitator of money laundering to having substantial investments in BTC amounted to “a very glaring public example of a big shift in [his] opinions.”

    “My thought process continues to evolve,” Fink noted.

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

    While sharing the stage with Coinbase CEO Brian Armstrong, Fink did not entirely express optimism regarding Bitcoin throughout the discussion. He referred to Bitcoin as “an asset of fear,” pointing out the cryptocurrency’s price decline following news of a US-China trade agreement and the possible conclusion of the war in Ukraine.

    He further elaborated:

    “If you bought [Bitcoin] for a trade, it’s a very volatile asset. You’ll need to be exceptionally skilled at market timing, which most people aren’t.”

    Fink’s statements sharply contrast his views from October 2017, prior to Bitcoin’s notable bull run that propelled the cryptocurrency to record highs. Back then, the CEO expressed that the cryptocurrency “demonstrates the demand for money laundering in the world.”

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

    In the eight years since that declaration, BlackRock received regulatory approval from the US Securities and Exchange Commission to launch 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 maximum valuation of approximately $70 billion.

    IBIT faced significant net outflows in November

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