BlackRock Bets on Crypto Assets

During the Q3 2024 earnings call, BlackRock CEO Larry Fink made another significant statement: Bitcoin is becoming a serious alternative to traditional commodities, particularly gold. This was confirmed by Bloomberg Intelligence analyst Eric Balchunas, who shared a segment of the speech.

The development of digital assets is not dependent on elections

Fink is confident that regardless of the outcome of the U.S. presidential elections, digital assets are gaining popularity, and this trend will only intensify. According to him, Bitcoin has become a distinct asset class with great potential for further application.

"This form of investment will expand its role, especially considering the growing importance of the Ethereum blockchain," Fink said.

What will drive cryptocurrency prices?

Larry Fink believes that liquidity and transparency, rather than regulation, will be the key factors for the market’s continued development. He also drew an analogy with the mortgage markets, whose development once also required time and the introduction of analytical tools.

Fink did not overlook the topic of the digitalization of national currencies. He mentioned initiatives in countries such as India and Brazil but emphasized that this is merely an "additional" segment of the blockchain ecosystem, which will not become its main direction.

AI and analytical tools — the future of the crypto asset market

According to BlackRock's CEO, the market needs the integration of AI and more analytical tools to facilitate the adoption of crypto assets.

This is not Larry Fink’s first public support of cryptocurrencies. He previously referred to Bitcoin as "digital gold," urging investors to pay attention to it. Will this mark the beginning of a new era for the financial market? Time will tell.