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Larry Fink, CEO of the massive asset management company Blackrock, said that yesterday’s surge in Bitcoin and crypto was a flight into quality.
Crypto is quality
Following Monday’s huge spike in the bitcoin price, after CoinTelegraph had mistakenly tweeted that the IShares Spot Bitcoin ETF was a done deal, Larry Fink was a guest of Fox News, and what he had to say about crypto would surprise many, even after lauding Bitcoin in recent times.
When questioned about the event on Fox Business News yesterday, Larry Fink said he had been busy all day and had only heard of the news about an hour previously. However, he went on to say:
“This is an example of the pent-up interest in crypto, and we are hearing from clients around the world about the need for crypto.
He added:
“I think some of this rally is way beyond the rumour. I think the rally today is about a flight into quality.”
Fink defined his flight into quality as investors buying into treasuries, gold, or crypto.
When asked where the markets might go if a hot war broke out over the next several days, Fink expressed his view that as long as the war stayed within the borders of the countries concerned it was probably priced in. But he also thought that much depended on the oil market.
Opinion
For Larry Fink, CEO of Blackrock, one of the largest companies in the world, with $9.4 trillion under management, to speak about crypto using this kind of language is the most positive recommendation for the asset that it’s possible to get.
However, how this balances with the various vitriolic statements on crypto from the Biden administration, the US regulators, the European Central Bank, and most of the global (unelected) financial agencies is yet to be seen.
Those holding crypto still need to be cautious about Fink’s bullish optimism on crypto. He also apologised for the term “ESG”, saying that it had been “weaponised” by those on the left and the right, but he and his company are still part of the “system”, and links with governments and central banks are bound to still be there. Crypto came into being as “the people’s money”. Be that as it may, with Blackrock and other huge institutional entities entering the arena, the bulk of the ownership might well be transferred elsewhere.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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