Still, BlackRock CEO Larry Fink, who is a huge fan of digital assets, nevertheless said he has not blinded the possibility of risks to the US from Bitcoin (BTC).
“The US has benefited from the dollar as a global reserve currency for decades,” Fink said in an annual letter to shareholders, but it doesn’t guarantee that it will last forever.
“I’m clearly not an anti-digital asset,” continues Fink. “But two things are true at the same time: distributed finances are extraordinary innovation. It makes the market faster, cheaper and more transparent.
Fink’s letter comes at a time of high market uncertainty and uncertainty among investors regarding the country’s economic condition amid a policy change set by US President Donald Trump. Fink said that in order to balance the country’s deficit, investors need to diversify their portfolios to add private market assets in addition to stocks and bonds.
Fink doubled his commitment and belief in digital assets, saying he believes that tokenized funds will be as well known among investors as investment trade funds (ETFs) as long as the industry can generate better infrastructure for digital identity.
“Every stock, every bond, every fund – every asset – can be tokenized. If so, it will revolutionize your investment,” he wrote. “Tokenization is not enough if we are serious about building an efficient and accessible financial system. Digital verification needs to be resolved too.”
In January 2024, BlackRock became one of the publishers to release Spot Bitcoin ETFs. Their product, Ishares Bitcoin Trust (IBIT), has become the most successful ETF in the history of the asset class. As of today, the fund has processed nearly $50 billion in assets, half of which comes from retail investors. The asset manager has also issued Buidl, a tokenized money market fund that is expected to exceed $2 billion by April, making it the largest tokenized fund currently available on the market.
