from Sputnik News:
BlackRock, the world’s largest asset manager, stated in its latest ad that Bitcoin is no longer a “radical idea” but a legitimate asset, held or used by over 250 million people worldwide. What’s behind the change of heart?
In January 2024, BlackRock introduced the iShares Bitcoin Trust (IBIT), a Bitcoin ETF that swiftly emerged as the largest cryptocurrency fund globally. Notably, BlackRock CEO Larry Fink, who had once labeled Bitcoin as an “index of money laundering,” has recently redefined his stance, describing it as an alternative to gold.
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BlackRock’s change of heart is notable, especially as other Wall Street giants like Vanguard and State Street remain cautious on Bitcoin. Wall Street analyst and longtime investor Charles Ortel believes they have valid reasons for their skepticism.
What are Risks Associated With Bitcoin?
Ortel outlines several concerns usually cited by investors:
They could have deeper concerns about being associated with bad actors who may use cryptocurrencies to launder money or for other illegal activities
Governments could make sudden regulatory changes that might diminish the appeal of owning cryptocurrencies, including forcing more disclosures from investors
Advances in quantum computing could potentially make it easier to hack into cryptocurrency infrastructure
The indirect impact of crypto-mining on electricity costs, inflation, and the environment could also fuel their concerns
“Cryptocurrencies have posted impressive gains, and it takes brave investors to bet against ‘proven’ winners. However, gold has served as a reliable store of value for millennia,” Ortel emphasizes.
At the same time, Ortel acknowledges that “BlackRock has a good sense of what investors want, and they now believe that cryptocurrencies have gained a veneer of respectability.”
Given BlackRock’s bullish approach to Bitcoin, it is clear they also believe their firm can profit by offering this option to investors, according to the analyst.
BlackRock’s Bitcoin push has led some netizens to speculate that the firm is attempting to dominate the cryptocurrency market.
