It seems like everyone eventually changes their tune Bitcoin (CRYPTO: BTC). One of those people is none other than billionaire CEO Larry Fink BlackRockthe world’s largest asset manager.
Fink was once a Bitcoin skeptic and dismissed it as worthless, but he has since done a 180 and is now leading the charge to integrate Bitcoin into traditional finance and bring the cryptocurrency to the masses. However, it’s his most recent comments that really shed light on how far he thinks Bitcoin can go.
BlackRock and Larry Fink call their Bitcoin shot
Few companies contribute to Bitcoin adoption as much as BlackRock. In January 2024, the company launched its iShares Bitcoin Trustone of 11 newly introduced spot Bitcoin exchange-traded funds (ETFs). These funds offer both institutional and retail investors an easy way to gain exposure to Bitcoin through traditional stock markets.
While all major Bitcoin ETFs have seen historical success, BlackRock’s fund stands out. It leads with more than $24 billion in assets under management (AUM) and solidifies its position as the leader in Bitcoin investment vehicles.
More recently, BlackRock released a paper titled “Bitcoin: A Unique Diversifier,” outlining its belief in Bitcoin’s long-term value proposition. The report highlights how Bitcoin’s distinctive qualities (decentralization, security and finite supply) provide unparalleled risk diversification for investor portfolios, all of which could fuel increasing demand for the cryptocurrency as global debt levels rise and economic uncertainties persist. In many ways, BlackRock’s analysis echoes the sentiments that Bitcoin proponents have been expressing for years.
Fink didn’t stop there, however. During BlackRock’s most recent quarterly earnings call, he reinforced his bullish view on Bitcoin and provided some of his biggest comments yet. Fink emphasized that Bitcoin is not just an asset, but an alternative to commodities, going so far as to say that it is “an asset class in itself.” But the most striking comparison he made was when he compared Bitcoin’s potential to the early growth of mortgage-backed securities (MBS) in the 1980s.
Fink explained that, like Bitcoin today, the MBS market started slowly and struggled for mainstream adoption until data and analytics provided a clearer understanding of its value. Over time, mortgage-backed securities became a dominant force, now representing an $11 trillion market. Fink sees Bitcoin in a similar position, still in its early stages but poised for exponential growth.
If Bitcoin were to reach a similar market cap, it would be worth almost $550,000 per coin – a staggering 720% increase from its current price.
Keeping things under control
These projections may sound bizarre, but it’s important to remember that Bitcoin has a long history of defying expectations. Just five years ago, Bitcoin was trading at $8,000, with many investors doubting it would ever reach $20,000, let alone surpass $60,000. With Bitcoin trading around $67,000, Fink’s prediction of a $550,000 Bitcoin seems risky, but not impossible.
As BlackRock’s article outlines, Bitcoin has the potential to become a global store of value in an economic landscape full of devaluations, rising government debt, and policies that often leave the average investor behind. In such a scenario, Bitcoin’s finite supply of 21 million coins becomes even more attractive, increasing demand and ultimately driving prices much higher.
For investors, the message is clear: Bitcoin is no longer a marginal asset. With BlackRock leading the way and heavyweights like Fink supporting it, Bitcoin today offers a generational opportunity.
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RJ Fulton has positions in Bitcoin and iShares Bitcoin Trust. The Motley Fool holds and recommends positions in Bitcoin. The Motley Fool has a disclosure policy.
1 Top Cryptocurrency to Buy Before It Surges 700%, According to This Wall Street Executive and Billionaire was originally published by The Motley Fool
