BlackRock CEO Larry Fink: Bitcoin Is an Alternative Investment
Background: Larry Fink’s Changing Stance on Bitcoin
BlackRock CEO Larry Fink has reiterated his cautious approval of cryptocurrency, particularly Bitcoin, as an alternative investment, marking a significant change from past skepticism. Speaking with CBS on Sunday, Fink acknowledged that his 2017 viewpoint branding Bitcoin as “the domain of money launderers and thieves” had evolved. “The markets teach you, you have to always relook at your assumptions. There is a role for crypto in the same way there is a role for gold, that is, it’s an alternative,” said Fink, as reported by Decrypt.
BlackRock, managing approximately $12.5 trillion in assets, launched its iShares Bitcoin Trust ETF in 2024 following regulatory approval, quickly becoming the largest U.S. crypto ETF with over $93.9 billion in assets under management. Fink’s more measured support reflects a broader trend on Wall Street, moving from resistance to cautious acceptance of crypto assets.
Market Reaction and Institutional Adoption
The shift from industry leaders comes amidst growing retail and institutional interest in Bitcoin and other crypto assets. In a recent investor letter, Fink noted that about half of the demand for BlackRock’s Bitcoin ETF has come from retail investors. “Three-quarters of those investors had never owned an iShares product before,” Fink stated, according to Decrypt. Other global investment managers, including Fidelity, have also incorporated Bitcoin into their strategic allocations.
Market dynamics highlight Bitcoin’s resilience despite volatility. On Monday, Bitcoin traded above $115,000, according to CoinGecko, recovering after a sharp decline from $121,000 to $109,000 on Friday. This dip triggered approximately $20 billion in liquidations, including $16.7 billion in long positions.
Fabian Dori, Chief Investment Officer at Sygnum, told Decrypt, “If there was any need for further confirmation of the increasing institutional adoption, it has probably been provided by BlackRock CEO Larry Fink flagging Bitcoin as a potential replacement of the U.S. dollar as a global reserve currency in case the U.S. debt situation would spiral out of control.” Dori emphasized that institutions are attracted to crypto as an alternative store of value, a next-generation payment method, and the infrastructure for decentralized application economies.
What’s Next: Regulatory and Industry Perspectives
Despite the momentum, skepticism remains in some segments of the financial industry. Last week, British investment platform Hargreaves Lansdown advised clients to avoid Bitcoin, citing a lack of intrinsic value. Even so, the firm will permit qualified investors to access British crypto exchange-traded notes, reflecting ongoing customer demand for crypto exposure. Hargreaves Lansdown manages $226.8 billion (£170 billion) in assets.
As institutional involvement increases, market observers note a transition from mere participation to broader adoption. Increased macroeconomic uncertainty, geopolitical tensions, and currency risks are seen as drivers of Bitcoin’s appeal as a “safe haven” asset.
For deeper coverage of cryptocurrency news and trends, see Vizi’s cryptocurrency section.
Sources:
Decrypt
