Gold stands on par with Bitcoin! BlackRock CEO retracts 2017 Money Laundering allegations.

Larry Fink, CEO of BlackRock, retracted his statement in a recent interview that “Bitcoin is a money laundering index” from 2017, clearly stating that gold and Bitcoin serve the same purpose as alternative assets.

From “Money Laundering Index” to “Digital Gold”: Larry Fink's Major Turnaround

Larry Fink, the CEO of the world's largest asset management company BlackRock, publicly retracted his harsh criticism of Bitcoin during an interview with CBS on Sunday. The financial giant, which manages about $12.5 trillion in assets, admitted: “I did say that Bitcoin is a domain for Money Laundering and thieves.”

However, the market forced him to reconsider his assumptions.

“The market will tell you that you must constantly reevaluate your assumptions. The role of cryptocurrency is the same as that of gold, meaning it is a substitute,” Fink stated clearly in the interview, marking a significant shift in Wall Street's stance on cryptocurrency.

· Wall Street's collective attitude softens

Fink's transformation aligns with the broader softening of Wall Street's attitude towards cryptocurrencies. In 2017, in addition to Fink calling Bitcoin a “Money Laundering Index”, JPMorgan CEO Jamie Dimon described it as “a fraud” and stated that those who hold Bitcoin are “stupid”, comparing Bitcoin to the Dutch Tulip Mania of the 1630s.

However, market sentiment has undergone a dramatic change. Starting in 2023, Fink began to adopt a more moderate tone, and BlackRock's actual actions further prove that this is not just verbal expression. From asset management companies to investment banks, major financial institutions are gradually entering the cryptocurrency space. Although they still warn of market volatility and regulatory risks, investor demand continues to attract them for deeper engagement.

BlackRock Bitcoin ETF: Outperforming 20-Year-Old Products for 21 Months

In 2024, BlackRock launched one of the first U.S. cryptocurrency spot Bitcoin ETFs after obtaining regulatory approval from the U.S. Securities and Exchange Commission (SEC). Its iShares Bitcoin Trust ETF (IBIT) quickly became the market focus, currently managing assets over $93.9 billion, making it the largest cryptocurrency ETF in the world.

· IBIT's Amazing Report Card

Bloomberg analyst Eric Balchunas pointed out on Twitter on Monday that IBIT has become the most profitable exchange-traded fund (ETF) under BlackRock just 21 months after its launch, surpassing traditional products that have been profitable for over twenty years.

Key Data:

Asset management scale: just a step away from 100 billion dollars.

Annual Revenue Contribution: Approximately 244.5 million USD

Investor structure: 50% comes from retail investors, three-quarters of whom have never owned iShares products before.

Fink specifically pointed this out in a letter to investors earlier this year, showing that the Bitcoin ETF not only attracts existing customers but also opens up a whole new group of investors, bringing unprecedented market expansion opportunities for BlackRock.

The Parallel Status of Gold and Bitcoin: Institutional Adoption in a New Era

Sygnum Chief Investment Officer Fabian Dori told Decrypt that especially since the re-election of U.S. President Donald Trump, the acceptance of crypto assets has shifted from institutional participation to institutional adoption.

“If there is any further evidence needed to confirm the increasing adoption rate by institutions, then BlackRock CEO Larry Fink has likely confirmed this point. Fink pointed out that once the U.S. debt situation spirals out of control, Bitcoin could potentially replace the U.S. dollar as the global reserve currency,” Dori stated.

· Use Cases for Investment by Three Major Institutions

According to Dori's analysis, institutional interest in cryptocurrencies is focused on three key use cases:

1. Alternative Value Storage

Specific crypto assets as a digital alternative to gold are increasingly highlighting the safe-haven properties of Bitcoin in an environment of rising macroeconomic uncertainty, geopolitical tensions, and increasing risks of currency depreciation.

2. Alternative Payment Methods

Specific cryptocurrencies offer technological advantages for cross-border payments and instant settlements, challenging the efficiency bottlenecks of traditional financial systems.

3. Decentralized Application Infrastructure

Specific crypto assets serve as the next-generation infrastructure for realizing the decentralized application economy, providing technical support for the Web3 era.

· Enterprise-level Use Cases

A leading global traditional asset management company has incorporated Bitcoin into its strategic asset allocation:

Financial institutions: BlackRock, Fidelity, and others have added Bitcoin to some investment products.

Corporate Finance: Companies such as Tesla, Strategy, and Metaplanet are incorporating Bitcoin as an inflation hedge into their corporate strategies.

These developments have pushed Bitcoin's market capitalization to achieve a dominant position in the overall cryptocurrency market that hasn't been seen in years, proving that the parallel status of gold and Bitcoin in the eyes of institutions is gradually being established.

Cautiously Optimistic: Fink's Investment Advice and Market Controversies

Although Fink acknowledges the similarities between gold and Bitcoin, he still urges investors to be cautious in his latest comments. “For those looking to diversify their investments, this is not a bad asset, but I believe it should not be a significant part of a portfolio,” he added.

· Market differences still exist

Not all financial institutions accept Bitcoin. Last week, the UK investment platform Hargreaves Lansdown warned users to steer clear of Bitcoin, calling it an asset with “no intrinsic value.” The company stated in a notice to customers that cryptocurrencies “should not be relied upon to help customers achieve their financial goals.”

However, market demand has forced these companies to adjust their stance. Hargreaves Lansdown, which manages $226.8 billion (£170 billion) in assets, stated that despite issuing warnings, it will still allow qualified investors to purchase new UK cryptocurrency exchange-traded notes (ETNs).

· Bitcoin Price Dynamics

On October 14, the Bitcoin trading price reported at $114,942. The price of Bitcoin plummeted significantly last week on October 10, dropping from $121,000 to $109,000 within a few hours, triggering nearly $20 billion in liquidations, including about $16.7 billion in long positions, indicating that market volatility remains a reality investors must face.