- BlackRock’s Larry Fink has revealed that he is a firm believer in Bitcoin and admits that he was completely wrong in his previous criticisms of the digital asset.
- BlackRock’s quarterly report shows significant growth as AUM reaches $10.6 trillion with iShares Bitcoin Trust (IBIT) reaching an AUM of $18.2 billion.
BlackRock CEO Larry Fink has backtracked from his earlier position about Bitcoin (BTC) as he joins the tall list of Bitcoin maximalists and publicly declares his belief in the digital asset. In his recent appearance on CNBC, Fink recalled his earlier criticisms of Bitcoin which go as far back as 2017. In one of his statements made seven years ago, the BlackRock CEO labeled Bitcoin as an “index of money laundering”.
Bitcoin just shows you how much demand for money laundering there is in the world. That’s all it is.
Years later, the investment manager’s Chairman and CEO admits to having learned more about the asset and realized he was wrong. According to him, the diversification properties of Bitcoin make it possible to have “uncorrelated returns”, and also protect investors from currency debasement.
I believe that you have countries where you are frightened of your everyday existence. And if you have an opportunity to invest in something that is outside of your country’s control, then you have more financial control.
Interestingly, his comments have received massive attention within the crypto community with MicroStrategy’s Michael Saylor retweeting a line from his interview. Another Bitcoin enthusiast identified as Tuur Demeester also stressed how these statements underscore the significance of the industry.
Huge. Also, Fink emphasizes Bitcoin is a conservative, cautious investment, de facto replacing the old Wall Street sales pitches about bonds and real estate. This cycle = bitcoin’s mass adoption phase!
At press time, Bitcoin was trading at $63.9k after surging by 9% in the last seven days.
BlackRock Records Massive Growth in Q2
Fink’s current position aligns with the growth of BlackRock including the area of spot Bitcoin ETF in the US. As we earlier reported, BlackRock’s Bitcoin ETF surpassed Grayscale to become the world’s largest in May with an AUM of $20 billion. According to its second-quarter report, BlackRock’s Asset Under Management (AUM) is also reported to have reached a record $10.6 trillion just below the projected $10.73 trillion, with the iShares Bitcoin Trust (IBIT) reaching an AUM of $18.2 billion. Compared to the previous performance, this represents a 13% increase year-over-year.
In addition, the company’s net inflow reached $81.57 billion, falling short of the projected $101.24 billion. However, this represents a 1.8% increase from the previous year. According to Fink, the total net outflow recorded in the first half of the year reached a staggering $140 billion.
For the equity net inflows, $6.44 billion was recorded, appearing far lower than the estimated $31.85 billion. In all, the company recorded a revenue of $4.81 billion in the quarter, marking an 8% year-over-year increase and slightly missing the $4.85 billion projected.
According to Fink, the strategic execution and growth opportunities of the company are the broadest set in years.
BlackRock is executing on the broadest opportunity set we’ve seen in years, including in private markets, Aladdin, and whole portfolio solutions across both ETFs and active. At the same time, we are opening up meaningful new growth markets for our clients and shareholders with our planned acquisitions of Global Infrastructure Partners and Preqin.
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