Fink shared that he has revised his previously skeptical views on Bitcoin, despite having called it a "money laundering index" back in 2017. At the time, the BlackRock executive claimed that Bitcoin was primarily used for illegal purposes. Now, Fink has come to realize that more and more investors are looking for new ways to protect their savings from inflation, political instability, and economic crises. Bitcoin has already survived several market crashes and continues to grow.
However, Fink advised investors to be cautious — not to overestimate the potential of the first cryptocurrency and not to invest too much money in it. In Fink’s view, Bitcoin should be treated as a tool to diversify an investment portfolio, rather than as an asset to make a big bet on. He remains seriously concerned about Bitcoin’s volatility.
"It’s not a bad asset. But I don’t think it should make up a significant portion of an investment portfolio," Fink said.
BlackRock was one of the first American companies to launch a Bitcoin exchange-traded fund (ETF) in 2024. A crypto ETF allows people to indirectly invest in BTC without the need to buy and store it directly. Just a few months after its launch, the assets under management in BlackRock’s Bitcoin ETF reached $93.9 billion.
Earlier this year, Larry Fink named the condition under which Bitcoin could reach $700,000 — investors would need to allocate 2% to 5% of their portfolios to cryptocurrency. Previously, the BlackRock CEO noted that people tend to start buying Bitcoin when they begin to fear for their financial security.
