Bitcoin Is on the Path to Becoming a Standalone Asset Class: Larry Fink

Larry Fink, CEO of BlackRock, is clear in his belief that Bitcoin is on the path to becoming a standalone asset class. He views it as not being influenced by the forthcoming US elections

BlackRock CEO Larry Fink believes that Bitcoin is on its way to becoming a standalone asset class, and its development will not be significantly influenced by the upcoming US elections. He made these remarks during BlackRock’s third-quarter earnings call.

“Bitcoin will become as big as the US housing market” – Larry Fink

That market is currently 50 Trillion. Let’s estimate 100 Trillion by 2040.

That is 76x Bitcoin’s 1.3 Trillion market cap.

In other words, Bitcoin is going to 5 Million.

Source: the most important person in…

“Bitcoin will become as big as the US housing market” – Larry Fink

That market is currently 50 Trillion. Let’s estimate 100 Trillion by 2040.

That is 76x Bitcoin’s 1.3 Trillion market cap.

In other words, Bitcoin is going to 5 Million.

Source: the most important person in…

— Fred Krueger (@dotkrueger) October 14, 2024

BlackRock, the world’s largest asset manager, has made a big bet on Bitcoin. The company’s spot Bitcoin ETF, which was launched in January, has been a huge success. Launched only nine months ago, it has managed to reach an astonishing $23 billion in assets.

This growth shows how institutional buyers are turning to Bitcoin, with BlackRock leading the effort to promote Bitcoin as an investment vehicle. Fink likened Bitcoin to other Wall Street financial products that were once ignored and gradually blossomed, such as mortgage and high-yield bonds.

Since the beginning of 2021, he has been changing his view on cryptocurrency, especially when he was seen discrediting it alongside the JPMorgan CEO. But there’s no denying that Fink is bullish.

Bitcoin ETFs Break Inflow Records

Bitcoin ETFs have seen record inflows, which only adds more presence to their existence in the market.

The U.S. spot Bitcoin ETFs saw inflows of $555.9 million recently, the highest since June this year. This surge brought Bitcoin’s price to a two-week high of $66,500, indicating that investors are gaining more confidence in the cryptocurrency.

This trend has not gone unnoticed, and experts have begun to observe it. According to Nate Geraci, president of ETF Store, the recent inflows have been ridiculous in the context of initial demand expectations.

“The net inflows of Bitcoin ETFs have reached nearly $20 billion in the last ten months, which is a clear signal that more and more institutional investors are interested in Bitcoin,” he said.

Eric Balchunas, the senior ETF analyst at Bloomberg, has also compared Bitcoin ETFs to gold-based products, saying that while gold is the trusted safe-haven asset, Bitcoin is making a strong bid for that position.

“Gold ETFs have only seen $1.4 billion worth of net inflows this year, while Bitcoin ETFs have attracted over $19 billion,” Balchunas said.

Bitcoin Challenges Gold’s Status as Safe-Haven Asset

There is a growing trend of institutional investors piling into Bitcoin thus making the difference between Bitcoin and gold smaller.

This is an indicator that shows the increasing relevance of Bitcoin as an asset that offers refuge in the face of geopolitical risks.

The largest inflow was reported by Fidelity Wise Bitcoin Origin Fund (FBTC) with $239.3 million, while Bitwise’s Bitcoin ETF (BITB) attracted more than $100 million. BlackRock’s own iShares Bitcoin Trust (IBIT) witnessed an inflow of $79.6 Million. Other Bitcoin ETFs like the ARKB and GBTC also witnessed an inflow.

Standard Chartered has forecasted that Bitcoin will surge past $200,000 by 2025, regardless of the result of the upcoming US presidential election. This bullish trend is backed up by the institution’s growing interest and the evolution of Bitcoin as a financial instrument.