The CEO of Blackrock, the world’s largest asset manager, Larry Fink, says he is “very bullish on the long-term viability of Bitcoin.” Noting that he is “pleasantly surprised” by the demand for Blackrock’s spot bitcoin exchange-traded fund (ETF), he emphasized that the Ishares Bitcoin Trust (IBIT) is “the fastest growing ETF in the history of […]
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(Bloomberg) — BlackRock Inc. Chief Executive Officer Larry Fink said the US public debt situation “is more urgent than I can ever remember” and that the country needs to adopt policies to spur economic growth.
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The nation can’t rely on taxes and spending cuts to get the problem under control, Fink wrote in his annual letter Tuesday. He raised the prospect of a “bad scenario” akin to Japan’s economy in the late 1990s and early 2000s, which led to a period of austerity and stagnation.
“A high-debt America would also be one where it’s much harder to fight inflation since monetary policymakers could not raise rates without dramatically adding to an already unsustainable debt-servicing bill,” said Fink, 71.
The cost of servicing the debt has already ballooned, and the 3 percentage points in extra interest payments the US government now must pay on 10-year Treasuries compared with three years ago is “very dangerous,” he wrote.
“More leaders should pay attention to America’s snowballing debt,” Fink wrote, saying the US can’t take for granted that investors will continue to want to buy as much US debt. Foreign countries are building their own capital markets and are likely to invest domestically, he said.
“Is a debt crisis inevitable? No,” he wrote, calling for capital markets to help grow the economy through infrastructure investments, especially in the energy industry.
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Larry Fink, CEO of BlackRock, liked cryptocurrencies—and Bitcoin and particular—to “digitizing gold” while praising Bitcoin as an “international asset” in an interview with Fox Business today.
Fink said:
“Bitcoin is not based on any one currency, and so it can represent an asset that people can play as an alternative. It’s digitalizing gold in many ways. Instead of investing in gold as a hedge against the onerous problems of any one country or the devaluation of your currency of whatever country you’re in, Bitcoin is an international asset.”
The perspective contrasts with Fink’s comments at the New York Times Dealbook Conference in 2018. At the time, he expressed caution about the cryptocurrency industry, stating that it needed time to mature and become “legitimate” before BlackRock would consider trading crypto assets or launching crypto-based ETFs.
Fink also voiced concerns at the time about the lack of regulation and backing for crypto-assets, suggesting that they would need to be backed by a government before BlackRock would get involved.
Fast forward to today, and BlackRock finds itself at the forefront of efforts to synthesize crypto markets with more traditional ones. In June, the company filed plans with the U.S. Securities and Exchange Commission (SEC) to create a spot Bitcoin ETF through its iShares subsidiary.
The filing marked a significant shift in the financial landscape, as no spot Bitcoin ETF has ever been approved by the SEC due to concerns over market manipulation and lack of oversight on many cryptocurrency exchanges. Despite these challenges, BlackRock’s move has triggered a wave of institutional interest, with a survey by Laser Digital revealing that 96% of professional investors are keen to invest in crypto.
Fink’s recent comments and BlackRock’s ongoing efforts signal a growing acceptance of cryptocurrency within the financial sector.
While the path to SEC approval for a spot Bitcoin ETF remains uncertain, Fink’s shift in perspective from five years ago underscores the rapid evolution of the cryptocurrency landscape. His comments today reflect a belief in the potential of Bitcoin as an international asset, unanchored to any one country, and a tool for investment in a better tomorrow. It begs the question if BlackRock’s moves this summer signal that it now considers cryptocurrency “legitimate.”
The post BlackRock CEO Larry Fink likens crypto to ‘digitizing gold’; praises Bitcoin as an ‘international asset’ appeared first on CryptoSlate.
Good morning, Broadsheet readers! Vodafone CEO Margherita Della Valle is making big moves as a new CEO, a British baroness is behind California’s social media law, and Marissa Mayer is a founder now. The Broadsheet will be off on Monday to observe Juneteenth. Have a great weekend!
– CEO to founder. Marissa Mayer has had a storied career in Silicon Valley, from employee No. 20 at Google to Yahoo CEO. But until recently, she’d never held that other lauded Silicon Valley title: founder.
Mayer has spent the past few years building what is now Sunshine, an A.I.-powered contacts tool. She joined us at a Fortune Most Powerful Women dinner in Menlo Park, Calif., this week to talk about that career pivot. Even though she hasn’t herself been a founder before now, she said, she’s spent years surrounded by them.
“My whole career has been based around my interactions with great entrepreneurs,” she told Fortune editor-at-large Michal Lev-Ram. “I got to witness and work with the best,” she said, name-checking Google founders Sergey Brin and Larry Page.
In her executive roles at Google and Yahoo, she acquired dozens of companies, requiring her to judge what makes a good founder.
So when she landed on the idea that felt right for her, addressing a major product and design problem, she was ready to become a founder herself. She’s bringing her legendary work ethic—weekly all-nighters during her early time at Google—to a new startup with 25 employees, compared to Google and Yahoo’s thousands.
Sunshine’s platform aims to simplify and learn from people’s digital address books. The typical person has 2,000 contacts, 20% of which are usually “stale” with a nonfunctioning phone number or email address, Mayer says. Mayer’s goal is for Sunshine to learn information like which contacts are friends and which are colleagues, or even who’s a colleague who became a friend or a friend who became a colleague. The platform aims to understand which relationships are on the upswing—with increased contact—and which are trailing off. With that information, Sunshine can help people better take advantage of their networks, plan events, and more.
As a startup leader, Mayer says she’s standing by the management principles that guided her Big Tech executive days. Not all of those were popular, like Yahoo’s return-to-office mandate a decade ago. (Sunshine employees also work in the office today.) “I never ask someone to do something I wouldn’t do myself,” Mayer says. “And a lot of those values translate regardless of company size.”
Emma Hinchliffe
emma.hinchliffe@fortune.com
@_emmahinchliffe
The Broadsheet is Fortune’s newsletter for and about the world’s most powerful women. Today’s edition was curated by Kinsey Crowley. Subscribe here.
This story was originally featured on Fortune.com
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