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BlackRock CEO Larry Fink calls Bitcoin “digital gold” after studying it as the world’s largest asset management firm surpasses $10.6 trillion in assets under management (AUM).
“I am a major believer that there is a role for Bitcoin in portfolios,” Fink said in a July 15 CNBC interview. “I believe you’re gonna see that as one of the asset classes that we all look at,” he added.
BlackRock AUM Increases by $1.2 Trillion Year-To-Date
BlackRock’s spike in AUM represents a remarkable $1.2 trillion increase from the previous year, driven significantly by growing inflows into ETFs (exchange-traded funds).
According to Fink, the firm’s ETFs have experienced unprecedented inflows at the start of 2024. In the company’s quarterly earnings report, the CEO highlighted the key contributors to this growth:
“Organic growth was driven by private markets, retail active fixed income, and surging flows into our ETFs, which had their best start to a year on record,” Fink stated.
One of the standout performers among BlackRock’s offerings is the iShares Bitcoin Trust (IBIT), the world’s largest spot Bitcoin ETF. This fund, holding over $19.4 billion worth of Bitcoin, commands a dominant 35.2% market share among all U.S. Bitcoin ETFs, according to data from Dune.
In the second quarter of 2024, investors purchased $83 billion worth of BlackRock ETF shares. This has brought the year-to-date total to over $150 billion. The surge in demand has contributed to an 8% year-over-year increase in revenue and an 11% rise in operating income for BlackRock.
Fink attributes part of BlackRock’s success to its “longstanding relationships with corporates and governments.” He elaborated:
“These relationships differentiate BlackRock as a capital partner in private markets, driving unique deal flow for clients. We have strong sourcing capabilities, and we are transforming our private markets platform to bring even more benefits of scale and technology to our clients.”
Spot Bitcoin ETFs Break Three-Week Outflows
Amidst these developments, spot Bitcoin ETF inflows have turned positive following three consecutive weeks of outflows. This shift has helped Bitcoin’s price recover above the $60,000 mark. U.S. spot Bitcoin ETFs recorded their second consecutive week of net positive inflows, totaling over $414 million, as per Dune data.
JUST IN: BlackRock CEO Larry Fink says he is a major believer in #Bitcoin after studying it. pic.twitter.com/PZLUKX3WEo — Bitcoin Magazine (@BitcoinMagazine) July 15, 2024
On July 12, BlackRock recorded the largest inflows among all ETF issuers, amassing over $120 million in investment, according to Farside Investors data. This momentum continued as Bitcoin experienced its fifth-largest weekly inflow on record, amounting to over $1.35 billion. Conversely, short Bitcoin-related investment products saw their largest weekly outflows since April 2024, totaling over $8.6 million.
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