Finance

BlackRock’s Bitcoin Bet: How Larry Fink’s U-Turn Signals a Wall Street Revolution

BlackRock’s Larry Fink now sees Bitcoin as an asset, his ETF nearing $100B. Market shifts drive change despite caution.

October 13, 2025, 5:34 PM

Close-up portrait of Larry Fink, chairman and CEO of BlackRock, wearing a suit and glasses, with his hands clasped.

The American billionaire businessman, Larry Fink, is captured in a formal setting, holding his hands in a characteristic gesture during an interview or presentation. By Photo Agency / Shutterstock.com.

Executive Summary

BlackRock CEO Larry Fink has significantly softened his stance on Bitcoin, now acknowledging it as an alternative asset similar to gold, a notable departure from his previous skepticism.

BlackRock’s iShares Bitcoin Trust ETF (IBIT) has become highly successful, approaching $100 billion in assets under management, influencing Fink’s evolving perspective and reflecting a broader Wall Street shift towards cryptocurrencies.

Institutional adoption of crypto assets is accelerating, partly propelled by the re-election of President Donald Trump, with Bitcoin being explored for various use cases including as a store of value, means of payment, and a hedge against economic uncertainty.

The Story So Far

The increasing institutional acceptance of cryptocurrencies, exemplified by BlackRock CEO Larry Fink’s pivot from skepticism to acknowledging Bitcoin as an alternative asset, is largely driven by the overwhelming success and investor demand for products like BlackRock’s iShares Bitcoin Trust ETF. This shift is further fueled by broader macroeconomic uncertainties, including concerns over U.S. debt, and the perceived impetus for institutional crypto adoption following President Donald Trump’s re-election.

Why This Matters

BlackRock CEO Larry Fink’s dramatic shift from Bitcoin skeptic to acknowledging its role as an alternative asset like gold, alongside the immense success of BlackRock’s IBIT ETF, signifies a major validation of cryptocurrencies by traditional finance. This pivot reflects a broader Wall Street acceptance, driven by robust investor demand, and is accelerating Bitcoin’s institutional integration, potentially legitimizing it as a mainstream asset class and expanding its perceived utility as a store of value and even a potential reserve currency amid macroeconomic uncertainties and factors like President Donald Trump’s re-election.

Who Thinks What?

Larry Fink, CEO of BlackRock, has significantly softened his stance on Bitcoin, now acknowledging its role as an alternative asset similar to gold and a potential diversifier, though he still advises caution regarding portfolio allocation.

Many major financial institutions and crypto advocates are increasingly embracing cryptocurrencies, viewing Bitcoin as moving towards full institutional integration, a hedge against inflation, and a potential global reserve currency.

Some traditional financial players, like British investment platform Hargreaves Lansdown, maintain a wary stance on Bitcoin, advising clients to avoid it due to a lack of intrinsic value, yet acknowledge and facilitate access for qualified investors due to persistent customer demand.

BlackRock CEO Larry Fink has significantly softened his stance on Bitcoin and cryptocurrencies, now acknowledging their role as an alternative asset similar to gold. Speaking on CBS, Fink, who once labeled Bitcoin an “index of money laundering,” stated that the markets have taught him to “relook at [his] assumptions,” though he still advises caution regarding portfolio allocation. This pivot coincides with BlackRock’s iShares Bitcoin Trust ETF (IBIT) approaching $100 billion in assets under management, making it one of the firm’s most successful funds.

Fink’s Evolving Perspective

Fink’s recent comments mark a notable departure from his 2017 skepticism. He conceded his previous view that Bitcoin was primarily for illicit activities, now recognizing its potential as a diversifier for investors. However, he emphasized that crypto should not constitute a large portion of an investment portfolio.

BlackRock’s Crypto Dominance

BlackRock, the world’s largest asset manager overseeing approximately $12.5 trillion, launched its spot Bitcoin ETF in 2024 following U.S. regulatory approval. The iShares Bitcoin Trust ETF (IBIT) has quickly become a leader in the crypto ETF market, generating substantial annual revenue for BlackRock and surpassing older, established funds in profitability.

Wall Street’s Shifting Tides

Fink’s change in tone reflects a broader shift within Wall Street, where many major financial institutions are increasingly embracing cryptocurrencies. Historically, leaders like JPMorgan Chase CEO Jamie Dimon also expressed strong negative views, but investor demand, particularly from retail investors new to iShares products, has driven a more conciliatory approach. Fink himself noted that a significant portion of IBIT’s demand came from first-time iShares investors.

Institutional Adoption and Macro Outlook

Fabian Dori, Chief Investment Officer at Sygnum, highlighted that the re-election of President Donald Trump has further propelled crypto asset adoption from institutional involvement to full institutional integration. Dori suggested that Fink’s recent remarks even hinted at Bitcoin’s potential to replace the U.S. dollar as a global reserve currency if the U.S. debt situation were to escalate. This sentiment has contributed to Bitcoin’s market dominance reaching multi-year highs.

Beyond investment, institutions are exploring Bitcoin for three primary use cases: an alternative store of value, a means of payment, and a next-generation infrastructure for decentralized application economies. Companies such as Tesla, MicroStrategy, and Metaplanet have already integrated Bitcoin into their corporate strategies as a hedge against inflation and increased macro uncertainty.

Lingering Caution Amidst Demand

Despite growing institutional acceptance, some traditional financial players maintain a wary stance. British investment platform Hargreaves Lansdown recently advised clients to avoid Bitcoin, citing its “no intrinsic value” and unsuitability for meeting financial goals. Nevertheless, the firm, which manages $226.8 billion in assets, still allows qualified investors access to new British crypto exchange-traded notes, acknowledging persistent customer demand.

Market Movements

Bitcoin recently traded above $115,000, recovering after a sharp dip that saw its price fall from $121,000 to $109,000 in a single day, triggering significant liquidations across the market.