{"id":218323,"date":"2024-12-24T21:09:30","date_gmt":"2024-12-24T19:09:30","guid":{"rendered":"https:\/\/www.arabtelegraph.com\/?p=218323"},"modified":"2024-12-24T21:09:30","modified_gmt":"2024-12-24T19:09:30","slug":"blackrock-bets-on-bitcoin-is-the-us-dollar-era-over","status":"publish","type":"post","link":"https:\/\/www.arabtelegraph.com\/?p=218323","title":{"rendered":"?BlackRock Bets on Bitcoin: Is the US Dollar Era Over"},"content":{"rendered":"<div class=\"article__header\">\n<div class=\"article__announce-text\" dir=\"ltr\">BlackRock, the world&#8217;s largest asset manager, stated in its latest ad that Bitcoin is no longer a &#8220;radical idea&#8221; but a legitimate asset, held or used by over 250 million people worldwide. What&#8217;s behind the change of heart?<\/div>\n<\/div>\n<div class=\"article__body\" dir=\"ltr\">\n<div class=\"article__block\" data-type=\"text\">\n<div class=\"article__text\">In January 2024,\u00a0<strong>BlackRock<\/strong>\u00a0introduced the iShares Bitcoin Trust (IBIT), a Bitcoin ETF that swiftly emerged as the largest cryptocurrency fund globally. Notably, BlackRock CEO\u00a0Larry Fink, who had once labeled Bitcoin as an\u00a0<strong><em>&#8220;index of money laundering,&#8221;<\/em><\/strong>\u00a0has recently redefined his stance, describing it as an alternative to gold.<\/div>\n<\/div>\n<div class=\"article__block\" data-type=\"text\">\n<div class=\"article__text\">BlackRock&#8217;s\u00a0change of heart\u00a0is notable, especially as other Wall Street giants like Vanguard and State Street remain cautious on Bitcoin. Wall Street analyst and longtime investor Charles Ortel believes they have valid reasons for their skepticism.<\/div>\n<div><\/div>\n<\/div>\n<div class=\"article__block\" data-type=\"h3\">\n<h6 id=\"1121257375-1\" class=\"article__h2\">What are Risks Associated With Bitcoin?<\/h6>\n<\/div>\n<div class=\"article__block\" data-type=\"text\">\n<div class=\"article__text\">Ortel outlines several concerns usually cited by investors:<\/div>\n<\/div>\n<div class=\"article__block\" data-type=\"list\">\n<div class=\"article__list\">\n<div class=\"article__list-item\">\n<div class=\"article__list-label\"><\/div>\n<p>They could have deeper concerns about being associated with bad actors who may use cryptocurrencies to launder money or for other illegal activities<\/p><\/div>\n<div class=\"article__list-item\">\n<div class=\"article__list-label\"><\/div>\n<p>Governments could make sudden regulatory changes that might diminish the appeal of owning cryptocurrencies, including forcing more disclosures from investors<\/p><\/div>\n<div class=\"article__list-item\">\n<div class=\"article__list-label\"><\/div>\n<p>Advances in quantum computing could potentially make it easier to hack into cryptocurrency infrastructure<\/p><\/div>\n<div class=\"article__list-item\">\n<div class=\"article__list-label\"><\/div>\n<p>The indirect impact of crypto-mining on electricity costs, inflation, and the environment could also fuel their concerns<\/p><\/div>\n<\/div>\n<\/div>\n<div class=\"article__block\" data-type=\"quote\">\n<div class=\"article__quote\">\n<div class=\"article__quote-bg\">\n<div class=\"article__quote-bg-line\"><\/div>\n<\/div>\n<div class=\"article__quote-text\">&#8220;Cryptocurrencies have posted impressive gains, and it takes brave investors to bet against &#8216;proven&#8217; winners. However, gold has served as a reliable store of value for millennia,&#8221; Ortel emphasizes.<\/div>\n<div class=\"article__quote-info\">\n<div class=\"elem-info\">\n<div class=\"elem-info__share\">\n<div class=\"share m-active\" data-id=\"1121257375\" data-url=\"https:\/\/sputnikglobe.com\/20241224\/blackrock-bets-on-bitcoin-is-the-us-dollar-era-over-1121257375.html?share-block=1121257385\" data-title=\"&quot;Cryptocurrencies have posted impressive gains, and it takes brave investors to bet against 'proven' winners. However, gold has served as a reliable store of value for millennia,&quot; Ortel emphasizes.\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"article__block\" data-type=\"text\">\n<div class=\"article__text\">At the same time, Ortel acknowledges that\u00a0<em>&#8220;BlackRock has a good sense of what investors want, and they now believe that cryptocurrencies have gained a veneer of respectability.&#8221;<\/em><\/div>\n<\/div>\n<div class=\"article__block\" data-type=\"text\">\n<div class=\"article__text\">Given BlackRock&#8217;s bullish approach to Bitcoin, it is clear they also believe their firm can profit by offering this option to investors, according to the analyst.<\/div>\n<\/div>\n<div class=\"article__block\" data-type=\"text\">\n<div class=\"article__text\">BlackRock&#8217;s Bitcoin push has led some netizens to speculate that the firm is attempting to dominate the cryptocurrency market.<\/div>\n<\/div>\n<div class=\"article__block\" data-type=\"article\" data-article=\"main-photo\">\n<div class=\"article__article m-image\"><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter\" title=\"This Wednesday, April 3, 2019, file photo shows a box filled with dollar bills, in New York.\" src=\"https:\/\/cdn1.img.sputnikglobe.com\/img\/07e8\/05\/1d\/1118676011_0:413:3055:1635_1920x0_80_0_0_e018469a51f69ad934f5b5b213ebf28c.jpg.webp\" srcset=\"https:\/\/cdn1.img.sputnikglobe.com\/img\/07e8\/05\/1d\/1118676011_0:413:3055:1635_640x0_80_0_0_8b0a6f45b9ab2f2f3047f2c4690f250d.jpg.webp 640w,https:\/\/cdn1.img.sputnikglobe.com\/img\/07e8\/05\/1d\/1118676011_0:413:3055:1635_1280x0_80_0_0_9919972b579348ac6fcfa1f5fbb1a5c2.jpg.webp 1280w,https:\/\/cdn1.img.sputnikglobe.com\/img\/07e8\/05\/1d\/1118676011_0:413:3055:1635_1920x0_80_0_0_e018469a51f69ad934f5b5b213ebf28c.jpg.webp 1920w\" alt=\"This Wednesday, April 3, 2019, file photo shows a box filled with dollar bills, in New York. - Sputnik International, 1920, 12.11.2024\" width=\"1920\" height=\"768\" data-source-sid=\"ap_photo\" data-srcset=\"https:\/\/cdn1.img.sputnikglobe.com\/img\/07e8\/05\/1d\/1118676011_0:413:3055:1635_640x0_80_0_0_8b0a6f45b9ab2f2f3047f2c4690f250d.jpg.webp 640w,https:\/\/cdn1.img.sputnikglobe.com\/img\/07e8\/05\/1d\/1118676011_0:413:3055:1635_1280x0_80_0_0_9919972b579348ac6fcfa1f5fbb1a5c2.jpg.webp 1280w,https:\/\/cdn1.img.sputnikglobe.com\/img\/07e8\/05\/1d\/1118676011_0:413:3055:1635_1920x0_80_0_0_e018469a51f69ad934f5b5b213ebf28c.jpg.webp 1920w\" \/><\/div>\n<\/div>\n<div class=\"article__block\" data-type=\"h3\">\n<h6 id=\"1121257375-2\" class=\"article__h2\">What Could be Behind BlackRock&#8217;s Interest in Bitcoin?<\/h6>\n<\/div>\n<div class=\"article__block\" data-type=\"text\">\n<div class=\"article__text\">The answer might lie in BlackRock&#8217;s Outlook 2025, which calls Bitcoin &#8220;<em><strong>a tactical hedge against specific risks, like gold.&#8221;<\/strong><\/em><\/div>\n<\/div>\n<div class=\"article__block\" data-type=\"list\">\n<div class=\"article__list\">\n<div class=\"article__list-item\">\n<div class=\"article__list-label\"><\/div>\n<p>In its report, the firm warns of an impending economic transformation that could surpass the Industrial Revolution in its scope and impact.<\/p><\/div>\n<div class=\"article__list-item\">\n<div class=\"article__list-label\"><\/div>\n<p>BlackRock anticipates &#8220;geopolitical fragmentation&#8221; of the world into competing blocs, with mega forces fundamentally reshaping the economy.<\/p><\/div>\n<\/div>\n<\/div>\n<div class=\"article__block\" data-type=\"text\">\n<div class=\"article__text\">Under these circumstances, BlackRock sees\u00a0<em>&#8220;the potential for \u2026diversifiers, old like gold and new like Bitcoin, to step in.&#8221;<\/em><\/div>\n<\/div>\n<div class=\"article__block\" data-type=\"text\">\n<div class=\"article__text\">Gold has surged as investors seek protection against soaring inflation. Asset management firms are emphasizing this trend while also promoting Bitcoin, highlighting its potential as a new diversifier thanks to its unique value drivers.<\/div>\n<\/div>\n<div class=\"article__block\" data-type=\"text\">\n<div class=\"article__text\"><em><strong>&#8220;Bitcoin\u2019s potential to appreciate over time when its predetermined supply is met with growing demand \u2013 and demand is based on investor belief in Bitcoin\u2019s potential to become more widely adopted as a payment technology,&#8221;<\/strong><\/em>\u00a0writes Samara Cohen, Chief Investment Officer of ETFs and Index Investments at BlackRock.<\/div>\n<\/div>\n<div class=\"article__block\" data-type=\"article\" data-article=\"main-photo\">\n<div class=\"article__article m-image\"><img decoding=\"async\" class=\"aligncenter\" title=\"Dollar pyramid\" src=\"https:\/\/cdn1.img.sputnikglobe.com\/img\/106176\/34\/1061763420_0:336:1920:1104_1920x0_80_0_0_880575a419cd6c51b68351c0b3572b59.jpg.webp\" srcset=\"https:\/\/cdn1.img.sputnikglobe.com\/img\/106176\/34\/1061763420_0:336:1920:1104_640x0_80_0_0_bdefda2228572bed9bbadb4a6da1a848.jpg.webp 640w,https:\/\/cdn1.img.sputnikglobe.com\/img\/106176\/34\/1061763420_0:336:1920:1104_1280x0_80_0_0_aa13d4bf541971c9e894f6f9925b0ec6.jpg.webp 1280w,https:\/\/cdn1.img.sputnikglobe.com\/img\/106176\/34\/1061763420_0:336:1920:1104_1920x0_80_0_0_880575a419cd6c51b68351c0b3572b59.jpg.webp 1920w\" alt=\"Dollar pyramid - Sputnik International, 1920, 20.12.2024\" width=\"1920\" height=\"768\" data-source-sid=\"cc_0\" data-srcset=\"https:\/\/cdn1.img.sputnikglobe.com\/img\/106176\/34\/1061763420_0:336:1920:1104_640x0_80_0_0_bdefda2228572bed9bbadb4a6da1a848.jpg.webp 640w,https:\/\/cdn1.img.sputnikglobe.com\/img\/106176\/34\/1061763420_0:336:1920:1104_1280x0_80_0_0_aa13d4bf541971c9e894f6f9925b0ec6.jpg.webp 1280w,https:\/\/cdn1.img.sputnikglobe.com\/img\/106176\/34\/1061763420_0:336:1920:1104_1920x0_80_0_0_880575a419cd6c51b68351c0b3572b59.jpg.webp 1920w\" \/><\/p>\n<div class=\"article__article-info\" data-type=\"article\">\n<div class=\"elem-info\">\n<div class=\"elem-info__share\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"article__block\" data-type=\"h3\"><\/div>\n<div class=\"article__block\" data-type=\"text\">\n<div class=\"article__text\">Why would BlackRock be interested in a new payment technology, other than the dollar-centered one?<\/div>\n<\/div>\n<div class=\"article__block\" data-type=\"quote\">\n<div class=\"article__quote\">\n<div class=\"article__quote-bg\">\n<div class=\"article__quote-bg-line\"><\/div>\n<\/div>\n<div class=\"article__quote-text\">\n<p>&#8220;The rewiring of globalization is also playing out in reserve currencies,&#8221; writes Tom Donilon, Chairman of the BlackRock Investment Institute. &#8220;As the world divides into competing blocs, and the US and Western governments lean on sanctions and other restrictions, some countries are shifting their reserves out of US dollars into gold and other assets, while increasingly conducting trade finance in\u00a0non-dollar currencies.&#8221;<\/p>\n<\/div>\n<div class=\"article__quote-info\">\n<div class=\"elem-info\">\n<div class=\"elem-info__share\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"article__block\" data-type=\"text\">\n<div class=\"article__text\">Does this mean BlackRock is taking de-dollarization seriously and preparing for a post-dollar decentralized global order of multiple payment systems, currencies, and digital assets? Time will tell what the firm\u2019s strategic shift towards Bitcoin means.<\/div>\n<\/div>\n<div class=\"article__block\" data-type=\"text\">\n<div class=\"article__text\">Meanwhile, Ortel doesn&#8217;t rule out that the investment company that big could even play against the greenback and other established fiat currencies for the profit&#8217;s sake:<\/div>\n<\/div>\n<div class=\"article__block\" data-type=\"quote\">\n<div class=\"article__quote\">\n<div class=\"article__quote-bg\">\n<div class=\"article__quote-bg-line\"><\/div>\n<\/div>\n<div class=\"article__quote-text\">\n<p>&#8220;As others have learned through history it is dangerous for private investors to challenge governments. That said,\u00a0George Soros\u00a0broke the Bank of England [in 1992] so, perhaps, a firm like BlackRock will believe it can profit from breaking over-leveraged nations that today still have &#8216;hard&#8217; fiat currencies,&#8221; Ortel concludes, referring to the 1992 sterling crisis which was estimated to have cost the British Treasury over $3.7 billion.<\/p>\n<\/div>\n<div class=\"article__quote-info\">\n<div class=\"elem-info\">\n<div class=\"elem-info__share\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"article__block\" data-type=\"article\" data-article=\"main-photo\">\n<div class=\"article__article m-image\"><\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>BlackRock, the world&#8217;s largest asset manager, stated in its latest ad that Bitcoin is no longer a &#8220;radical idea&#8221; but a legitimate asset, held or used by over 250 million people worldwide. What&#8217;s behind the change of heart? In January 2024,\u00a0BlackRock\u00a0introduced the iShares Bitcoin Trust (IBIT), a Bitcoin ETF that swiftly emerged as the largest &hellip;<\/p>\n","protected":false},"author":6,"featured_media":218324,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[266],"tags":[],"class_list":["post-218323","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>?BlackRock Bets on Bitcoin: Is the US Dollar Era Over - Arab Telegraph<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.arabtelegraph.com\/?p=218323\" \/>\n<meta property=\"og:locale\" content=\"ar_AR\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"?BlackRock Bets on Bitcoin: Is the US Dollar Era Over - Arab Telegraph\" \/>\n<meta property=\"og:description\" content=\"BlackRock, the world&#8217;s largest asset manager, stated in its latest ad that Bitcoin is no longer a &#8220;radical idea&#8221; but a legitimate asset, held or used by over 250 million people worldwide. 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In January 2024,\u00a0BlackRock\u00a0introduced the iShares Bitcoin Trust (IBIT), a Bitcoin ETF that swiftly emerged as the largest &hellip;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.arabtelegraph.com\/?p=218323\" \/>\n<meta property=\"og:site_name\" content=\"Arab Telegraph\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/aliarabtelegraphhttps:\/\/m.facebook.com\/ali.aed2https:\/\/www.facebook.com\/aliarabtelegraph:\/\/www.facebook.com\/https:\/\/www.google.com\/?hl=ar\/\" \/>\n<meta property=\"article:published_time\" content=\"2024-12-24T19:09:30+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.arabtelegraph.com\/wp-content\/uploads\/2024\/12\/1117130679_0_71_3387_1976_1920x0_80_0_0_026f13268be07427d79af6ff00b69519.jpg-1.webp\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1079\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/webp\" \/>\n<meta name=\"author\" content=\"newadmin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@aligazette\" \/>\n<meta name=\"twitter:label1\" content=\"\u0643\u064f\u062a\u0628 \u0628\u0648\u0627\u0633\u0637\u0629\" \/>\n\t<meta name=\"twitter:data1\" content=\"newadmin\" \/>\n\t<meta name=\"twitter:label2\" content=\"\u0648\u0642\u062a \u0627\u0644\u0642\u0631\u0627\u0621\u0629 \u0627\u0644\u0645\u064f\u0642\u062f\u0651\u0631\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 \u062f\u0642\u0627\u0626\u0642\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.arabtelegraph.com\/?p=218323#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.arabtelegraph.com\/?p=218323\"},\"author\":{\"name\":\"newadmin\",\"@id\":\"https:\/\/www.arabtelegraph.com\/#\/schema\/person\/b7450c4def13c1bdcda61be3ccc45de0\"},\"headline\":\"?BlackRock Bets on Bitcoin: Is the US Dollar Era Over\",\"datePublished\":\"2024-12-24T19:09:30+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.arabtelegraph.com\/?p=218323\"},\"wordCount\":703,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.arabtelegraph.com\/#\/schema\/person\/b796bd29af18bedbb5ec003a20ada50d\"},\"image\":{\"@id\":\"https:\/\/www.arabtelegraph.com\/?p=218323#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.arabtelegraph.com\/wp-content\/uploads\/2024\/12\/1117130679_0_71_3387_1976_1920x0_80_0_0_026f13268be07427d79af6ff00b69519.jpg-1.webp\",\"articleSection\":[\"BUSINESS\"],\"inLanguage\":\"ar\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.arabtelegraph.com\/?p=218323#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.arabtelegraph.com\/?p=218323\",\"url\":\"https:\/\/www.arabtelegraph.com\/?p=218323\",\"name\":\"?BlackRock Bets on Bitcoin: Is the US Dollar Era Over - 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