BlackRock CEO Larry Fink has changed his view of Bitcoin and openly acknowledged that change.
Speaking at the NYT DealBook Summit on Wednesday, Fink said he currently sees potential in Bitcoin. Fink was once a vocal critic of Bitcoin, famously calling it a “money laundering indicator.”
Fink today described Bitcoin as a “fear asset” and detailed that investors are frequently buying it in response to concerns about financial security, geopolitical instability, and the continued erosion of traditional assets due to rising deficits.
“If you buy to trade, it’s a very volatile asset and you have to be very good at market timing, which most people aren’t,” Fink said. “If you are buying it as a hedge against all expectations, that has a significant impact on your portfolio…The other big problem with Bitcoin is that it is still heavily influenced by leveraged players.”
Fink, speaking alongside Coinbase CEO Brian Armstrong, noted that market movements, such as Bitcoin’s recent 20-25% decline, often reflect broader events, such as a trade deal with China or a potential settlement in Ukraine.
Despite all this, Fink still suggested it could serve as meaningful portfolio insurance for those holding it as a hedge rather than a short-term trade.
Mr. Fink emphasized that his views had evolved over the years through interactions with clients and discussions with policymakers, and said his change of heart was a “very clear public example” of the need to reevaluate strong opinions.
Meanwhile, BlackRock, the $13.5 trillion asset management firm that Fink helped found, now offers several crypto products, including a leading Bitcoin ETF, in stark contrast to Fink’s previous skepticism.
Armstrong, who was seated next to Fink, said it was “impossible” that Bitcoin could reach zero. Fink also shared his optimism for the asset, saying, “We think there is a very large use case for Bitcoin.”
BlackRock’s Bold Adoption of Bitcoin and Cryptocurrency
Back in October, BlackRock announced that it was developing technology to tokenize a wide range of assets, including real estate, stocks, and bonds.
Fink said at the time that more than $4.5 trillion in cryptocurrencies, stablecoins and tokenized assets are held in digital wallets worldwide. He noted that much of this capital is located outside the United States, providing an opportunity to reach new investors.
Fink said tokenization could allow crypto entrants to access traditional long-term products such as retirement funds. He explained that Bitcoin and cryptocurrencies serve a similar purpose as gold.
