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During a recent earnings call, BlackRock CEO Larry Fink made waves by stating that the financial giant views Bitcoin as a modern alternative to gold. Fink shared that BlackRock is currently in discussions with various institutions about potential allocations to Bitcoin, and he also hinted that similar interest could soon expand to Ethereum.
Bitcoin and Ethereum ETFs Gaining Traction
[embed]https://TWITTER.com/EricBalchunas/status/1845944946991276494[/embed] In January, BlackRock launched its highly successful Bitcoin ETF, which contributed to the cryptocurrency's surge to record highs. In July, the firm introduced an Ethereum ETF, which, while receiving more modest inflows, has still been deemed a moderate success. Fink's comments highlight BlackRock's belief in the long-term potential of digital assets, underscoring their growing role in institutional portfolios.
Comparing Digital Assets to the Mortgage Market
Fink drew an intriguing comparison between digital assets and the $11 trillion mortgage market. He acknowledged that cryptocurrencies, like the mortgage market in its early days, are off to a slow start. However, BlackRock was able to expand the mortgage market through better analytics and data, and Fink is confident that the same pattern will emerge with digital currencies.
Bitcoin ETFs See Record Inflows
Fink’s remarks coincided with a surge in Bitcoin ETF inflows. On October 14, Bitcoin ETFs attracted a staggering $550 million in fresh investments. BlackRock’s IBIT pulled in $79.5 million, ranking third, while Fidelity’s FBTC took the top spot with $239.3 million. Bitwise’s BITB followed closely in second with $101.1 million. This marked one of the best days for these investment products since their launch. Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.