BlackRock CEO Larry Fink talked about Bitcoin at the World Economic Forum in Davos, saying if institutions globally allocated even 1% of their portfolios to bitcoin, the price could easily reach $700,000 per coin.
Fink has changed his tune on Bitcoin. Once a vocal critic, now he calls Bitcoin a “currency of fear” and a hedge against economic instability and currency devaluation. He said:
“If you fear the devaluation of your currency or are concerned about the economic or political stability of your country, you can turn to an instrument called Bitcoin that can overcome those fears. I strongly believe in the use of Bitcoin for this purpose.”
Fink’s prediction is based on institutional interest, particularly from sovereign wealth funds. In a recent conversation with one such fund, Fink said the topic of bitcoin allocation came up.
“Should we have a 2% allocation? Should we have a 5% allocation?” Fink asks. “If everybody adopted that conversation, it would be $500,000, $600,000, $700,000 per bitcoin.”
He quickly added, “I’m not promoting it by the way. That is not my promotion.” He’s being cautious as financial leaders often are when talking about volatile assets like bitcoin.
Fink’s view on Bitcoin has changed dramatically.
He was not a fan of digital assets, and in 2017 he called Bitcoin a tool for money laundering. By 2021 he was starting to change his mind. Today he’s not only open to Bitcoin but a “big believer” in it as an investment.
Fink’s change of heart says a lot about BlackRock’s overall approach to digital assets. The firm launched the iShares Bitcoin Trust in 2024, which is now not just a major player in the Bitcoin ETF space, but among all ETFs in history.
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The iShares Bitcoin Trust is now the largest Bitcoin ETF in the US and has attracted billions in inflows. BlackRock holds over 569,000 bitcoin worth over $60 billion, making it one of the largest institutional holders of the scarce digital asset.
According to Fink, Bitcoin is an answer to global economic problems.
He called it an international asset that can provide stability for investors worried about inflation, currency debasement or geopolitical instability. “Crypto is a currency of fear, and that’s okay” Fink said at the Davos panel.
Fink’s comments are echoed in a BlackRock report from December which recommends investors allocate up to 2% of their portfolios to bitcoin. The report calls bitcoin a store of value, a payments system and a diversifier in investment strategies.
Fink’s comments highlight the potential of Bitcoin but also its challenges. He said that even though bitcoin is very volatile, its important to remember that the big gains come from this sudden price actions.
BlackRock’s involvement in Bitcoin is part of a bigger trend of institutional adoption.
The firm’s launch of Bitcoin ETFs in the US and Canada shows they believe in the asset long term. As institutional interest grows, Fink’s $700,000 prediction doesn’t seem as crazy as it used to.
It remains to be seen when bitcoin gets to that level, but the global conversation around Bitcoin has changed for sure, and big names like Larry Fink are leading the way.
