BlackRock’s Larry Fink declares Bitcoin a standalone asset class

Larry Fink, the CEO of BlackRock, strongly believes that Bitcoin is on its way to becoming a standalone asset class.

According to Fink, Bitcoin’s future doesn’t depend on who wins the upcoming U.S. elections. “I’m not sure if either president would make a difference,” he said during BlackRock’s third-quarter earnings call.

Unlike the talking heads who keep talking about rules and oversight, Fink has a different perspective. For him, Bitcoin is just like any other new financial product that grows in scale over time.

“Years ago, when we started the mortgage market, years ago when the high-yield market occurred, it started off very slow,” Fink said.

BlackRock’s Bitcoin ETF is breaking all records

Fink’s company (the world’s largest asset manager) has gone full throttle on Bitcoin. Since launching its spot Bitcoin ETF in January, the fund has brought in billions. In just nine months, it has grown to a massive $23 billion. 

“And we will continue to pioneer new products to be making investing easier and more affordable,” Fink said. They’ve been on a marketing blitz, pushing Bitcoin’s potential in front of every possible investor.

This year, we saw a turnaround in his outlook. Back in 2021, he sided with Jamie Dimon, CEO of JPMorgan, in doubting the long-term value of Bitcoin. But today, his bullishness is glaringly evident.  

In a September investor note, BlackRock analysts compared Bitcoin to gold, highlighting how it performs during geopolitical crises. This mirrors the sentiments of hardcore Bitcoin believers who have always seen the asset as a safe haven.

Meanwhile, at the market close yesterday, the U.S. spot Bitcoin ETFs saw $555.9 million in inflows, the largest single-day inflow since June. That’s huge. Bitcoin hit a two-week high of $66,500 on the same day.

Nate Geraci, president of ETF Store, said it was a monster day for the products, adding that, “Simply ridiculous and blows away every pre-launch demand estimate.” According to him, the ETFs are approaching $20 billion in net inflows over the last ten months.

Eric Balchunas, a senior ETF analyst at Bloomberg, compared Bitcoin ETFs to gold-based products. Since the launch, Bitcoin has hit all-time highs five times.

Meanwhile, gold reached record highs 30 times this year, but only brought in $1.4 billion in net inflows. Bitcoin? Over $19 billion.

The gap between Bitcoin and gold ETF inflows shows where institutional money is flowing. While gold remains a trusted safe haven, Bitcoin is fast catching up, drawing a significant chunk of new money.

Fidelity Wise Bitcoin Origin Fund (FBTC) led with an inflow of $239.3 million. Bitwise’s Bitcoin ETF (BITB) followed, bringing in just over $100 million, while BlackRock’s iShares Bitcoin Trust (IBIT) saw $79.6 million.

Ark 21Shares Bitcoin ETF (ARKB) brought in just under $70 million, while Grayscale’s Bitcoin Trust (GBTC) saw its first inflow for October at $37.8 million, its highest since May.

Standard Chartered predicts that Bitcoin will hit $200,000 by 2025, no matter who wins the U.S. presidential election. Whether it’s Donald Trump or Kamala Harris in the White House, the prediction stands.