A Change of Heart in the World of High Finance?
For decades, we’ve seen skepticism around emerging assets, from Japanese equities in the 1980s to the dot-com bubble of the late ’90s. This decade’s standout? Bitcoin. And as it gains mainstream traction, some of the world’s most prominent financial figures lament their early skepticism.
David Rubenstein, co-founder of the esteemed Carlyle Group, expressed his regret recently: wishing he had the foresight to invest when Bitcoin was merely a $100 novelty.
His sentiments, aired on Bloomberg Television, weren’t just a testament to Bitcoin’s incredible price surge. They signify a deeper acceptance. Rubenstein acknowledges the “enormous interest” that Bitcoin has garnered, attributing its appeal to the decentralized nature of the digital asset: a currency immune to government intervention.
As Rubenstein puts it, “There’s enormous interest around the world, and to be able to have something you can transfer without having the government knowing about it, and keep it private. You can say people shouldn’t do that, but that’s not going to stop people from doing it.”
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BlackRock’s Surprising Embrace of Bitcoin
But it’s not just individual magnates warming up to Bitcoin. Established financial institutions are joining the fray. The tipping point for many skeptics was BlackRock’s recent endeavor into the Bitcoin market with their application for a Spot Bitcoin ETF.
Rubenstein highlighted this seismic shift, noting that while many had once ridiculed cryptocurrencies, the backing of industry giants like BlackRock forces a reevaluation. He poses a thought-provoking question: “If the mighty BlackRock is willing to have an ETF in bitcoin, maybe bitcoin is going to be around for a while?”
Watch Rubenstein on Bloomberg TV
Galaxy Digital CEO Mike Novogratz concurs, emphasizing Larry Fink’s pivotal role. In a conversation with CoinDesk reminiscent of the occasional dramatic turnarounds we’ve seen in the financial sphere, Novogratz mentioned Fink’s transformation from a Bitcoin skeptic to an advocate.
“Larry Fink is the most important thing that happened this year in Bitcoin,” said Novogratz. “He was a nonbeliever. Now he says, ‘Hey, this is going to be a global currency.’ People around the world all trust it.”
With BlackRock, the world’s largest asset manager boasting an impressive $9.1 trillion in assets under management (AuM), taking the plunge, we could be on the precipice of a significant influx of investment into Bitcoin.
If their Spot Bitcoin ETF secures the green light from the SEC, it’s not far-fetched to envision a cascade of individual investors, corporations, and even governments turning to BlackRock as their gateway to Bitcoin.