Giant in asset management BlackRockwith more than $10 trillion in assets under management, has published a new report Touting Bitcoin as a unique portfolio diversifier, it marks the latest embrace of Bitcoin by the world’s largest asset manager.
Earlier this year, BlackRock launched a Bitcoin exchange-traded fund (TO GO)and has quickly become one of the most successful ETF launches ever. The Bitcoin ETF now has over $21 billion in assets under management.
CEO of BlackRock Larry Fink recently changed its skeptical stance on Bitcoin, admitting it was “wrong” to dismiss it. The firm has been steadily publishing research explaining Bitcoin’s potential role for investors.
The new report explains that Bitcoin, while volatile, is fundamentally separate from other asset classes in the long run. It argues that Bitcoin’s adoption is dependent on global concerns about monetary stability, geopolitics, fiscal policy, and political stability – the inverse of traditional “risk assets.”
“Bitcoin, as the first decentralized, non-sovereign monetary alternative to gain widespread acceptance globally, has no traditional counterparty risk, is not dependent on a centralized system, and is not determined by the fortunes of a single country,” the report said.
As large traditional financial players like BlackRock increasingly embrace Bitcoin, its reputation and adoption will likely accelerate, pushing it further into the mainstream. BlackRock’s continued pro-Bitcoin stance reflects its growing adoption by global financial institutions.