BlackRock CEO Larry Fink says Bitcoin (BTC) is on his company's radar following the rapid rise of cryptocurrency over the past few months.
Speaking on Tuesday at the Council on Foreign Relations alongside former Bank of England Governor Mark Carney, Fink reportedly said:
"Bitcoin has caught the attention and imagination of a lot of people. It is still untested and very young compared to other markets."
He then added:
"Could it develop into a global market? Maybe."
Fink isn't the only BlackRock executive touting the potential value of Bitcoin. Last month, the company's chief investment officer, Rick Reader, told CNBC that Bitcoin is not only "here to stay" but "will largely replace gold."
Previously, comments like this would have been considered largely unusual from corporate officials, not to mention the world's largest asset manager with assets under management of around $ 7.4 trillion as of 2019.
But the public's perception of Bitcoin has changed dramatically over the past year. The record flows to Grayscale products, the growth of Bitcoin Treasuries, and the adjustment of the Guggenheim Securities and Exchange Commission to gain exposure to Bitcoin represented a seismic shift in institutional adoption.
Besides these moves, Bitcoin is also supported by investment legend Paul Tudor Jones and Stanley Druckmiller.
Institutional demand for Bitcoin has caused a troubling shortage in the market, with the likes of PayPal and Cash Up collecting most, if not all, of the newly mined bitcoin. PayPal alone buys nearly 70% of the new offer, according to Panetera Capital.
Currently, only 900 Bitcoins are mined every day. With demand increasing after the halving in May, prices are likely to continue rising. Even Citibank predicts a relatively astronomical Bitcoin price by the end of 2021.
Although BlackRock does not directly own Bitcoin, it has an indirect exposure to the asset through MicroStrategy, a business intelligence firm that has converted its balance sheet into Bitcoin. BlackRock is the largest investor in MicroStrategic with a 15.2% stake in the company.
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