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Larry Fink, CEO of BlackRock, the world’s largest asset manager, has confirmed a remarkable shift in his perspective on Bitcoin. During the New York Times DealBook Summit, he spoke about his “major turn” regarding the cryptocurrency he once labeled an instrument for criminals.
In Short #
- The CEO of the world’s largest asset manager, BlackRock, Larry Fink, has significantly changed his view on Bitcoin.
- Where he once called it an “instrument for money laundering,” his company now manages a Bitcoin fund that has reached a value of tens of billions of dollars.
- Fink continues to warn that Bitcoin is a very volatile and risky investment, especially for short-term trading.
From Skepticism to a Multi-Billion-Dollar Fund #
During the New York Times DealBook Summit on Wednesday, Fink acknowledged his changed position. In a conversation with journalist Andrew Ross Sorkin, he called his reversal “a very striking public example” of how his thinking evolves.
This stance is in stark contrast to his statements in October 2017. At the time, Fink stated that Bitcoin primarily showed “how much demand there is for money laundering in the world.” In early 2024, after approval from the U.S. regulator SEC, BlackRock got the green light for its own Bitcoin fund.
This fund, the iShares Bitcoin Trust (IBIT), has grown into one of the largest in the world with assets under management currently exceeding €62 billion.
An ETF (Exchange Traded Fund) is an investment product that tracks the price of an underlying asset, in this case, Bitcoin. It allows investors to invest in Bitcoin through a regular securities account, without having to buy and secure the digital currency themselves. BlackRock thus offers such a fund to its clients.
Risks and Volatility Remain #
Despite the fund’s success, Fink remains cautious. He now describes Bitcoin as an “asset of fear,” a sort of digital safe haven in times of geopolitical unrest. At the same time, he emphasizes the risks of the cryptocurrency.
“If you buy it for trading, it is a very volatile asset,” Fink stated. He added that successful trading requires good market timing, something “most people are not good at.”
Despite the caution, it is a fact that Bitcoin has brought the company much success. It was recently reported that it even had a record quarter, driven by strong demand for Bitcoin and Ethereum.
The changed view of one of the most powerful figures in the financial world is nevertheless good news for Bitcoin. It shows that the king of crypto is now truly entering the mainstream.