BlackRock CEO Larry Fink walked back his 2017 criticism of Bitcoin during a CBS interview on Sunday, stating that crypto serves the same purpose as gold in terms of being an alternative asset. Fink acknowledged he had to “relook at his assumptions” about the cryptocurrency after previously calling it an “index of money laundering.”
The world’s largest money manager oversees roughly $12.5 trillion in assets and launched one of the first U.S. spot Bitcoin ETFs in 2024 following regulatory approval from the SEC. BlackRock’s iShares Bitcoin Trust ETF has become the largest crypto ETF with more than $93.9 billion in assets under management.
Fink told CBS that markets teach investors to reassess their views constantly. He noted there is a role for crypto similar to gold’s position as an alternative investment, marking a significant shift from his earlier stance when he dismissed Bitcoin outright alongside other Wall Street CEOs.
The BlackRock chief urged caution despite his evolved perspective on digital assets. Fink stated that for investors looking to diversify, Bitcoin is not a bad asset, but emphasized it should not constitute a large component of any portfolio. This balanced view reflects growing institutional acceptance tempered by risk management considerations.
Fink’s tone has softened considerably since 2017, when he and JPMorgan Chase CEO Jamie Dimon led criticism of Bitcoin. Dimon called it a fraud and likened the asset to the Dutch tulip mania from the 1630s, while Fink characterized it as a domain for money launderers and thieves.
Major financial firms have gradually moved into the crypto sector over recent years, drawn by investor demand despite warnings about volatility and regulatory risk. In a letter to investors earlier this year, Fink noted that half of BlackRock’s Bitcoin ETF demand came from retail investors, with three‑quarters of those investors never having owned an iShares product before.
Fabian Dori, Chief Investment Officer at Sygnum, told media that institutional embrace of crypto assets has evolved from involvement to adoption, particularly since President Donald Trump’s reelection. Dori highlighted that Fink recently flagged Bitcoin as a potential replacement for the U.S. dollar as a global reserve currency if America’s debt situation spirals out of control.
Leading traditional asset managers, including BlackRock and Fidelity, have added Bitcoin to strategic asset allocations of some investment products. Corporations such as Tesla, Strategy and Metaplanet have integrated Bitcoin into their corporate strategies as an inflation hedge, demonstrating mainstream acceptance across different sectors.
British investment platform Hargreaves Lansdown warned users last week to avoid Bitcoin, calling it an asset with no intrinsic value. The firm, which manages $226.8 billion in assets, stated crypto shouldn’t be relied upon to help clients meet financial goals, though it will still allow qualified investors to access new British crypto exchange‑traded notes.