Whether you are directly or indirectly interested in the world of finance or the world of cryptocurrencies at the moment, this name should mean something to you. Larry Fink. The CEO of BlackRock, one of the largest asset management companies in the world, is now being closely scrutinized by the crypto ecosystem.
While the whole industry quivers in awaiting approval of a spot ETF issued by BlackRock, the boss of the financial giant seems to be more and more favorable to Bitcoin and even crypto in general. But what is it really? Who is Larry Fink? Is he really pro Bitcoin? Analysis in this article.
The Life of Larry Douglas Fink
Larry Fink, his full name Laurence Douglas Finkis an American businessman born on November 2, 1952 in Los Angeles, California.
In 1974, he earned a degree in political studies from the University of California, Los Angeles (UCLA). Two years later, in 1976, Fink earned an MBA from UCLA’s Anderson School of Management.
After completing his studies, Fink began his career at First Boston Corporation (now Credit Suisse). There, he gained experience in portfolio management and financial markets. Fink will quickly rise through the ranks within the company. First appointed to the management committee, he became, at the age of 29, the youngest director in the history of the bank.
In 1988, Larry Fink and his colleagues, Ralph Schlosstein, Susan Wagner, Robert Kapito and Keith Anderson, founded BlackRock. Over the years, BlackRock has become a leading global asset management company.
To give an example of the success and power of the company, BlackRock buys Barclays Global Investors December 2009. It was at this very moment that BlackRock became the world’s largest fund management company.
Leadership at BlackRock and political implications
Larry Fink played a key role as Chairman and CEO of BlackRock. Under his leadership, the company experienced spectacular growth. In June 2023, BlackRock manages $9.425 billion of assets.
BlackRock manages a diverse range of financial products, including mutual funds and ETFswhich we will return to later, and portfolio management services for a global clientele.
Larry Fink is also known for his involvement in social and political issues. Close to the companies in which BlackRock invests, the CEO sends them recommendations each year in an “annual letter”. In that of 2018 for example, he called on companies to play an active role in protecting the environmentto work for the well-being of their communities and increase the diversity of their workforce.
The CEO of BlackRock also owns certain links with American power. For example, Fink joined in 2016 a business forum convened by Donald Trumpthen president-elect, in order to provide the government in place with strategic and policy advice on economic issues.
Fink, Bitcoin and cryptocurrencies
For several weeks now, the entire crypto ecosystem has been in turmoil over approval of future Bitcoin ETF spot issued by BlackRock.
Now, Larry Fink seems, on this subject, quite in accordance with the ideas and projects of his company. Through various interviews and recent speeches, the CEO of BlackRock touts the interest in cryptocurrencies and Bitcoin.
During an interview given last July to the American media CNBC, Larry Fink defended, without mentioning it, Bitcoin. He declared thus:
“[Bitcoin] has differential value compared to other asset classes, but more importantly, because it is so international, it will transcend any currency“
Until very recently, Fink placed Bitcoin as safe investment, citing investor protection from “issues related to Israel’s war or global terrorism.” Note, however, that this announcement came following the increase in the price of BTC linked to a false alert broadcast by Cointelegraph concerning BlackRock’s Bitcoin ETF.
Finally, it should be noted that Fink grants enormous importance to ETFs, which according to him, are a means of “transforming investment”. We can deduce from this that Fink expects a lot from its future Bitcoin ETF.
Fink, a false defender of the crypto market?
Finally, we would like to add a slight nuance regarding Larry Fink’s positions on cryptocurrencies. Objectively, the boss of BlackRock positions himself as pro crypto and pro Bitcoin. But isn’t there a certain demagogic approach behind all this?
If BlackRock is pushing to pass its ETF, it is because the company necessarily has a financial interest in doing so. And logically, Fink has every interest in extolling the benefits of cryptocurrencies and Bitcoin publicly. But what is it really?
✨ BlackRock CEO exactly 6 years ago: #Bitcoin is an “index of money laundering.”
Today, Larry Fink is racing launch a #Bitcoin ETF and sees crypto as a “flight to quality.”
Everyone gets it eventually 🚀 pic.twitter.com/O7Du424tyG
— RIZZO (@pete_rizzo_) October 26, 2023
Six years ago, Fink criticized cryptos by accusing them of money laundering. Additionally, in 2019, BlackRock CEO denied the desire for exposure of its clients to cryptocurrencies. Fink then made a gradual shift in his views on cryptocurrencies. Thus, he declared in 2021 that crypto could “become a major asset class”.
The debate is therefore open and you will certainly have your own opinion on the real opinions of Larry Fink. But if we rely on BlackRock’s current moves and Fink’s statements, the latter now appears to be a defender of cryptocurrencies and Bitcoin. The future will surely tell us if BlackRock CEO’s enthusiasm was genuine or not.
Sources: Wikipedia, CNBC, Fox News
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Disclaimer: This article does not constitute investment advice. The information provided here should not be used as a basis for making financial decisions. Cryptocurrency investments involve risks and may result in significant losses. You should only invest what you can afford to lose and carry out your own research before making any investment decisions.