Larry Fink Calls Bitcoin ‘Asset of Fear’ and Softens Stance on Crypto

Larry Fink, Chairman and CEO of BlackRock, explained his ‘significant shift’ from associating cryptocurrencies with illegal activities to owning the largest spot bitcoin ETF.

Speaking at the DealBook Summit of The New York Times on Wednesday, Fink responded to questions regarding his views on cryptocurrencies and bitcoin.

The CEO of BlackRock stated that his change of opinion from associating cryptocurrencies primarily with money laundering to exposure to billions of dollars in bitcoin is a very obvious public example of a significant change in opinions.

– My thought process is always evolving – said Fink.

Fink, who appeared on the panel with Brian Armstrong, CEO of Coinbase, was not entirely optimistic about bitcoin during the panel’s duration. Fink described Bitcoin as an ‘asset of fear’, noting that the price of the cryptocurrency fell amid news of a trade agreement between the U.S. and China and the potential end of the war in Ukraine.

– If you bought bitcoin for trading, it is a very volatile asset. You will have to be very good at timing your trades, which most people are not – added Fink.

Fink’s comments sharply contrast with those he made in October 2017, before the well-known bitcoin surge that drove the cryptocurrency’s price to then-record levels. At that time, the CEO stated that the cryptocurrency demonstrates the demand for money laundering in the world.

In the eight years since that message, BlackRock has received regulatory approval from the U.S. Securities and Exchange Commission (SEC) to launch one of the first spot bitcoin ETFs in January 2024. The iShares Bitcoin Trust ETF, under the symbol IBIT, reached a peak value of around $70 billion.

Net outflows for IBIT increased in November

IBIT witnessed net outflows of over $2.3 billion in November, including withdrawals of about $463 million on November 14 and $523 million on November 18. However, BlackRock’s Head of Business Development, Cristiano Castro, stated at that time that the asset manager has confidence in ETFs as liquid and powerful instruments.