BlackRock CEO Says Bitcoin Is a Must-Have as Company Hits $10.6T AUM

Key Takeaways:

• BlackRock CEO Larry Fink has endorsed Bitcoin, calling it “digital gold” and a legitimate financial tool.
• BlackRock's assets under management reached a record $10.6 trillion, up $1.2 trillion from last year.
• iShares Bitcoin Trust (IBIT) holds the most significant amount of Bitcoin among public entities, with a 35.2% US market share.

Larry Fink Endorses Bitcoin as “Digital Gold”

Larry Fink, the CEO of the largest hedge fund globally, BlackRock, has once again expressed his support for Bitcoin, referring to the flagship digital asset as “digital gold” and a “legitimate” financial tool.

This positive comment follows the company reaching a historical milestone of over $10.6 trillion in assets under management (AUM), representing a $1.2 trillion year-over-year growth.

During an interview on July 15 with CNBC's Squawk on the Street, the head of the $10.6 trillion asset management firm informed Jim Cramer that he was initially skeptical about Bitcoin (BTC) but reconsidered after carefully studying the emerging asset class.

He acknowledged that his view on Bitcoin was mistaken five years ago and has now embraced the potential offered by the digital asset space. Consequently, Larry Fink asserts that he recognizes BTC as a legitimate financial instrument providing investors with uncorrelated returns.

He maintained,

“I believe it is an instrument that you invest in when you're more frightened, though. It is an instrument when you believe countries are debasing their currency by excess deficits, and some countries are.”

In addition, the CEO of the trillion-dollar company emphasized that some countries are facing worsening economic, political, and financial conditions. He highlighted the potential for Bitcoin to offer people in those societies an investment option beyond borders, providing hope during difficult times.

Moreover, Larry Fink called on US presidential candidates to unite the nation after the attempted assassination of former President Donald Trump. Fink urged them to prioritize the growth of capital markets, reduce regulatory burdens, and expand the economy.

BlackRock Reaches Historic $10.6 Trillion in Assets Under Management

Fink's statements on Monday morning came after BlackRock reported second-quarter earnings that exceeded analyst expectations, with assets under management growing by 13% year over year to $10.6 trillion.

Similarly, the company's report on Monday morning shows that its earnings per share (EPS) increased from $9.06 to $9.99, while revenue rose by 7.7% to $4.8 billion. Investors poured $83 billion into exchange-traded funds (ETFs) and $35 billion into fixed-income products.

Larry Fink shares his insights on BlackRock’s Q2 earnings results https://t.co/k7QXvP8EnX pic.twitter.com/vofMoxhP79

— BlackRock_News (@BlackRock_News) July 15, 2024

One contributor to the company's assets under management is its iShares Bitcoin Trust (IBIT), launched in January and has attracted over $18 billion, including $4 billion in the second quarter.

BlackRock currently holds the largest amount of Bitcoin among public entities through its IBIT exchange-traded fund (ETF), which presently possesses over 300,000 BTC. Dune's data shows it commands a significant 35.2% market share of all US Bitcoin ETFs.

Related: Blackrock Tokenized Fund Brings in over 200 Million.

Due to their considerable purchasing power, the buying and selling activities of large asset management companies and ETF issuers, such as BlackRock, can significantly influence the price of Bitcoin.

After three weeks of outflows, spot Bitcoin ETF inflows have shifted positively, leading to Bitcoin's recovery to over $63,000.

Data from Dune shows that US spot Bitcoin ETFs saw two consecutive weeks of net positive inflows, totaling over $290 million at the time of publication.