Blackrock CEO Larry Fink thinks that bitcoin may evolve into a global market. He added that the crypto is now on his company’s radar after its steep appreciation in the last few months. Speaking on December 1 at the Council on Foreign Relations together with former Bank of England governor Mark Carney, Fink allegedly stated:
“Bitcoin has caught the attention and the imagination of many people. Still untested, pretty small relative to other markets. Can it evolve into a global market? Possibly.”
Fink is not the only BlackRock executive who is touting bitcoin’s possible value. In November, the firm’s chief investment officer, Rick Rieder, told reporters that bitcoin is here to stay and it might soon replace gold as a haven asset to a large extent.
In the past, such comments would have been considered quite irregular coming from institutional investors, not to mention the world’s biggest asset manager with assets under its management surpassing $7.4 trillion as of 2019.
However, the public’s perception of bitcoin has changed significantly in the past several years. Huge inflows into Grayscale products, the thriving bitcoin corporate treasuries, and Guggenheim’s Securities and Exchange Commission amendment have gained exposure to bitcoin represent a major shift in institutional adoption.
Beyond those moves, investment legends Stanley Druckenmiller and Paul Tudor Jones are also backing a bullish bitcoin.
Institutional Demand For BTC Is Surging
The institutional demand for bitcoin is growing rapidly and it has created a huge shortage in the market, with the likes of Cash App and PayPal taking up most of the newly mined bitcoins. Reports from Pantera Capital indicate that PayPal alone is acquiring almost 70% of the new supply.
Today, just 900 BTC is mined daily. With demand increasing after the deflationary May halving event, prices might continue to surge. Even Citibank has said that bitcoin might achieve a comparatively astronomical price by the end of 2021.
Although BlackRock does not own bitcoin directly, it has some indirect exposure to the asset via MicroStrategy, a business intelligence company that changed its balance sheet to bitcoin. BlackRock is the biggest MicroStrategy investor with around a 15.2% stake in the intelligence company.