- Larry Fink says investors who expect currency devaluation should hold crypto.
- BlackRock’s iShares Bitcoin Trust (IBIT) is now the firm’s most profitable ETF.
- Fink now views Bitcoin as a legitimate alternative asset, despite past criticism.
BlackRock CEO Larry Fink now explicitly positions Bitcoin as an essential hedge against global currency devaluation. The head of the world’s largest asset manager ($13 trillion AUM) stated crypto ownership makes sense “if you believe countries will continue to devalue their currencies,” drawing a direct parallel between Bitcoin and gold as crucial ‘fear assets’ in an uncertain world.
This perspective gains considerable weight given the runaway success of BlackRock’s own Bitcoin ETF, even as Bitcoin’s price itself remains stuck in a tight range.
Fink: Crypto as a Hedge Against Currency Devaluation
Speaking recently at a financial forum, Fink said that investors who anticipate growing fiscal insecurity or continued monetary easing by governments should consider crypto assets or gold.
He characterized both as protection against inflation and the erosion of purchasing power, highlighting that their appeal stems from uncertainty in traditional markets.
Interestingly, in 2017, he famously called Bitcoin an “index of money laundering.” However, in an interview this month, he acknowledged that the market had forced him to relook at his assumptions, noting that crypto now plays a role similar to gold, i.e., as an alternative store of value.
He earlier stated that while digital assets may serve as a diversification tool, they should be approached prudently. Fink said that BTC is not a bad asset for diversification but shouldn’t make up a large component of one’s portfolio.
Related: Crypto Pauses After Hitting 2-Week Highs; All Eyes on Fed Decision This Week
BlackRock’s IBIT Dominance and the Bitcoin ETF Boom
Under Fink’s leadership, BlackRock launched its iShares Bitcoin Trust (IBIT) in early 2024 following SEC approval, a move that marked Wall Street’s official entry into Bitcoin ETFs.
Since then, IBIT has grown into the largest crypto ETF globally, holding over $93.9 billion in assets under management and generating more revenue than any other product in BlackRock’s entire ETF lineup.
According to Bloomberg Intelligence analysts Eric Balchunas and James Seyffart, the ETF’s modest 0.25% fee structure yields more than $240 million annually, a stunning figure for a fund less than two years old, Fortune reported.
IBIT is also on track to reach the $100 billion milestone faster than any other ETF in history, thanks to record-breaking inflows from both retail and institutional investors.
Bitcoin Rangebound, Retail Fades
Despite institutional enthusiasm, Bitcoin’s price remains rangebound between $113,000 and $115,000 amid a 16% rise in trading volume. Research from 10x Research warns that the asset’s soaring valuation may be pricing out retail investors.
The firm argued that Bitcoin’s diminishing returns and higher entry costs could weaken participation, noting that projections based on past market cycles are increasingly unreliable given the asset’s relative youth.
10x Research maintains a year-end target of $125,000, citing it as a realistic top given the maturing market structure.
Related: Bitcoin Price Prediction: Fed QT Pause And Trump–Xi Summit Put $118K In Play
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