Key Points:
- Larry Fink declares Bitcoin as a standalone asset class, not influenced by politics.
- BlackRock’s Bitcoin ETF hits $23 billion in nine months, driven by institutional demand.
- Bitcoin ETFs saw a single-day inflow of $555.9 million as Bitcoin reached $66,500.
- Fink’s bullish stance on Bitcoin contrasts with his previous skepticism in 2021.
Larry Fink Declares Bitcoin a Standalone Asset as ETF Inflows Surge
BlackRock CEO Larry Fink has made a bold statement about Bitcoin, declaring it a “standalone asset class” during the company’s third-quarter earnings call. Fink highlighted that Bitcoin’s growth is being driven by liquidity and transparency, rather than political or regulatory factors. According to him, Bitcoin is evolving similarly to other financial products that took time to scale, such as mortgages and high-yield bonds.
Fink’s comments come as BlackRock’s Bitcoin ETF, launched in January 2024, has broken records, amassing $23 billion in assets in just nine months. Institutional investors have been a key driver behind this growth, continuing to pour money into the ETF despite market fluctuations.
Record-Breaking ETF Performance Amid Bitcoin Surge
On October 14, 2024, BlackRock’s Bitcoin ETF saw its largest single-day inflow since June, bringing in $555.9 million as Bitcoin surged to a two-week high of $66,500. This influx of institutional capital underscores Bitcoin’s rising status as an investment vehicle. The inflows have propelled the ETF into the spotlight, with total net inflows approaching $20 billion over the past 10 months.
Fink’s stance on Bitcoin marks a significant shift from his earlier skepticism. In 2021, he aligned with JPMorgan CEO Jamie Dimon in questioning Bitcoin’s long-term value. However, his perspective has evolved, and he now sees Bitcoin as a maturing asset class with the potential for further growth.
Bitcoin’s Growing Role in the Global Financial Landscape
Fink’s bullish outlook is mirrored by BlackRock analysts, who recently compared Bitcoin to gold in a September note to investors. The comparison highlights Bitcoin’s resilience during geopolitical crises, reinforcing its appeal as a safe-haven asset. Bitcoin has now reached all-time highs five times since BlackRock’s ETF launch, drawing comparisons to gold-based ETFs, which have seen more modest inflows.
Bitcoin’s performance has outpaced gold in terms of inflows, with BlackRock’s ETF seeing over $19 billion compared to just $1.4 billion for gold ETFs. This gap reflects the shifting preferences of institutional investors, who are increasingly viewing Bitcoin as a viable alternative to traditional assets like gold.
Other major players in the Bitcoin ETF space have also seen strong inflows, including Fidelity’s Wise Bitcoin Origin Fund, which led with $239.3 million in new investments. Meanwhile, Standard Chartered predicts Bitcoin will reach $200,000 by 2025, regardless of political outcomes in the U.S., underscoring widespread optimism about the cryptocurrency’s future.
As Bitcoin continues to attract significant institutional interest and establish itself as a standalone asset, its role in global markets appears to be growing more pronounced, with more financial products likely to emerge in the coming years.
