World's Largest Asset Manager Believes Bitcoin “Serves Same Purpose As Gold” — Here's Why

BlackRock CEO Larry Fink has recently walked back on his previous claims about Bitcoin being an 'index of money laundering' and admitted that the cryptocurrency serves the same purpose as gold in one's portfolio.

“I did say Bitcoin, because we were talking about Bitcoin then, was the domain of money launderers and thieves," Fink told CBS on Sunday.

“But you know, the markets teach you, you have to always re-look your assumptions. There is a role for crypto in the same way there is a role for gold, that is, it’s an alternative," he added.

Fink's comments on Bitcoin come at a time when cryptocurrencies worldwide witnessed large liquidations, motivated by Donald Trump's warning to China on Friday.

Most cryptocurrencies suffered a beating, with Bitcoin dropping down from $125,000 levels to $104,000. Ethereum, too, saw a massive drawdown, falling to $3,700 levels.

Bitcoins has since recovered and is trading around $114,000 levels, with the entire crypto market adding $550 billion in value since Friday's close.

Fink, though, asserted caution, adding that Bitcoin is not a bad asset, but it should not form a major part of your portfolio.

“For those looking to diversify, it is not a bad asset, but I don’t believe that it should be a large component of your portfolio,” he said.

Earlier this month, similar words were echoed by Ben Powell, Chief Investment Strategist for the Middle East and Asia-Pacific at BlackRock.

In an exclusive conversation with NDTV Profit, Powell said, “Having a 2% exposure to Bitcoin could make sense. The same goes for Gold."

BlackRock is the world’s largest money manager that oversees roughly $12.5 trillion in assets. Its iShares Bitcoin Trust ETF is the largest crypto ETF with more than $93.9 billion in assets under management.