Larry Fink believes Bitcoin may evolve into a global market.

BlackRock CEO Larry Fink says Bitcoin System is on his company’s radar tracking the rapid rise in cryptomeda in recent months.

On Tuesday(1) while speaking at the Board of External Relations along with former Bank of England Governor Mark Carney, Fink said:

„Bitcoin has captured the attention and imagination of many people. It has not yet been tested, relatively small compared to other markets“.

So he added:

„Can it evolve into a global market? Possibly.“

Fink is not the only BlackRock executive divulging the potential value of Bitcoin. In the previous month, the investment director, Rick Rieder, told CNBC that, not only Bitcoin „came to stay“, but that he too will „take great part of the gold’s place“.

Previously, comments like this would be considered highly irregular coming from institutional chiefs, not to mention coming from the world’s largest asset manager with $7.4 trillion in overnight assets since 2019.

But public perception of Bitcoin has changed drastically over the past year. Record entry in Grayscale products, the growth of corporate treasuries in Bitcoin, and changes by the Guggenheim’s Securities and Exchange Commission to gain exposure to BTC represent a seismic shift in institutional adoption.

In addition to these movements, investment legends Paul Tudor Jones and Stanley Druckenmiller are also supporting Bitcoin.

The institutional demand for Bitcoin has created an alarming shortage in the marketplace, with companies like PayPal and Cash App mining most, if not all, of the newly mined BTC. PayPal is buying up to almost 70% of the new supply, according to Pantera Capital.

Currently, only 900 BTC are mined daily. With demand rising following deflation in May, prices tend to remain higher. Even Citibank has predicted a relatively astronomical price for Bitcoin by the end of 2021.

Although BlackRock is not the direct owner of Bitcoin, it has indirect exposure to the asset through MicroStrategy, a business intelligence company that converted its balance sheet to BTC. BlackRock is MicroStrategy’s largest investor with a 15.2% stake in the company.