Blackrock’s chief executive explained a dramatic pivot toward bitcoin’s long-term potential, framing the asset as protection in an era of fiscal strain while championing tokenization as the next force set to reshape global markets.
Blackrock CEO Backs Bitcoin While Advancing Tokenization of All Assets
Blackrock CEO Larry Fink shared last week at the New York Times’ Dealbook Summit that his thinking about bitcoin has undergone a major shift since he labeled the crypto “an index for money laundering and thieves” in 2017. Blackrock, the world’s largest asset manager, now manages the largest bitcoin exchange-traded fund (ETF), and Fink used his appearance to outline how his views changed and how he sees tokenization transforming global markets.
Explaining why he changed his mind about BTC, Fink stated: “You’ve got to evolve and change… I actually took it upon myself to visit and talk to a lot of people who were advocates of it. I wanted to understand what I am missing?” Noting that his earlier remarks were aimed at bitcoin specifically, not crypto in general, the Blackrock chief executive detailed:
I see a big, large use case for bitcoin and I still do today.
He said his role exposes him to thousands of clients and policymakers, which pushes him to reassess assumptions. He emphasized: “ Bitcoin is an asset of fear… You own bitcoin because you’re frightened of your physical security… your financial security.” He argued that long-term buyers view it as protection against debasement and fiscal deficits. He also highlighted market structure issues, pointing to leverage: “The other big problem of bitcoin is it is still heavily influenced by leveraged players.” Yet, he detailed rising allocations from endowments and sovereign wealth funds accumulating bitcoin across price levels to build multi-year positions.
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Fink expanded his broader thesis on financial technology, stressing that tokenization will be transformative. He said digitizing securities and enabling movement between digital wallets and ETFs will erase settlement frictions and cut transaction costs:
If we could digitize all stocks and bonds… it will reduce the friction costs.
The Blackrock CEO warned the United States is “late,” noting India and Brazil have already digitized payments and advanced national infrastructure. He also addressed the AI cycle, stating hyperscalers are “short compute” and demand will keep rising, even though investment timing may lag returns. He said corporate margins are widening because technology allows firms to “do more with… the same amount of people or less,” raising questions about the labor market and the university system. He closed by emphasizing his long-term focus: “We try to help people navigate a 30-year outcome. I don’t really care about what happens the next moment.”
FAQ ⏰
- What shift did Blackrock CEO Larry Fink make regarding bitcoin? He moved from skepticism to endorsing as a long-term protective asset.
- Why does Fink believe bitcoin demand is rising? He says investors seek security amid fears of debasement and fiscal deficits.
- How does Fink view tokenization’s impact on markets? He argues it will cut settlement friction and transform global securities infrastructure.
- What concerns did Fink raise about bitcoin market structure? He highlighted the influence of leveraged players on ’s price behavior.
Author: Kevin Helms
Source: Bitcoin
Reviewed By: Editorial Team
