Blackrock CEO Larry Fink says Bitcoin (BTC) is the company’s focus after the cryptocurrency has seen a rapid rally in recent months.
Fink told the Council on Foreign Relations on Tuesday with former Bank of England Governor Mark Carney:
“Bitcoin has caught the attention and imagination of many people. It has not been tested yet, it is very small compared to other markets.”
Then he added:
Can it turn into a global market? Can “.
Fink isn’t the only BlackRock boss showing the potential value of Bitcoin. Last year, the company’s chief investment officer, Rick Reader, told CNBC that Bitcoin was not only “here for a long time”, it would “largely replace gold.”
Previously, these comments were considered extremely erratic by the corporate elite, not to mention the world’s largest asset manager with assets under management in excess of $ 7.4 trillion as of 2019.
But the concept of Bitcoin in the community has changed dramatically over the past year. Record streams in greyscale products, the emergence of Bitcoin bonds, and the change of the Guggenheim Securities and Exchange Commission to reach BTC represent a seismic shift in institutional adoption.
Aside from these features, investment legends Paul Tudor Jones and Stanley Druckenmiller also support Bitcoin.
Institutional demand for Bitcoin has caused a worrying shortage in the market, as PayPal and the cash app have increased most, if not all, of BTC recoveries recently. According to Pantera Capital, PayPal alone is buying nearly 70% of the new offer.
Currently, only 900 BTC is mined per day. When demand rises from half in May, prices are likely to continue rising. Even Citibank predicts the price of Bitcoin is relatively astronomical by the end of 2021.
While BlackRock does not directly own Bitcoin, it has had an indirect impact on the asset through MicroStrategy, the business intelligence company that has converted its balance sheet into BTC. BlackRock is the largest investor in MicroStrategy, holding 15.2% of the company.