BlackRock chief executive Larry Fink believes that Bitcoin (BTC) and the rest of the crypto markets are now ready to serve as safe-haven assets amid worsening geopolitical conditions.
In a new Fox Business interview, Fink says that Bitcoin’s rally earlier this week is an indication that investors are seeing BTC as a mature asset that can serve as a store of value in times of crisis.
“I think it’s just an example of the pent-up interest in crypto. We are hearing from clients around the world about the need for crypto.
I think some of this rally is way beyond the rumor. I think the rally [on Monday] is about a flight to quality with all the issues around the Israeli war now, global terrorism and I think there are more people running into a flight to quality whether that is in treasuries, gold or crypto – depending on how you think about it.
And I believe crypto will play that type of role as a flight to quality.”
On Monday, Bitcoin rallied briefly above $30,000 after erroneous reports circulated that the U.S. Securities and Exchange Commission (SEC) greenlighted BlackRock’s bid for a spot-based BTC exchange-traded fund (ETF).
At time of writing, Bitcoin is trading for $28,448.
Looking at the broader picture, Fink says that people’s attention is being consumed by bad news stories around the globe that they are forgetting about the world-changing potential of artificial intelligence (AI) and technology.
“We are not spending enough time talking about some of the great things that are going on in the world today and that’s when I think about technology and that’s going to be shaping and changing our world. When you think about AI and robotics, this is going to accelerate movement towards nearshoring, and onshoring.
We’re going to be able to use this new technology… [to create] more jobs and more factories [in the US].”