BlackRock CEO Larry Fink Reverses Bitcoin Stance After Years of Skepticism
Larry Fink publicly reversed his position on Bitcoin during the New York Times DealBook Summit on December 3, 2025. According to Cointelegraph, the BlackRock CEO described his evolution from associating crypto with money laundering to managing the largest spot Bitcoin ETF. Fink called this change "a very glaring public example of a big shift" in his opinions.
The BlackRock chief appeared on stage with Coinbase CEO Brian Armstrong. Fink characterized Bitcoin as "an asset of fear" during the panel discussion. He explained that Bitcoin prices declined following news of a US-China trade deal and potential Ukraine war resolution. The asset serves investors concerned about physical and financial security, Fink noted.
Fink's current stance contrasts sharply with his 2017 comments. Eight years ago, he stated Bitcoin showed "how much demand for money laundering there is in the world." BlackRock received SEC approval to launch its iShares Bitcoin Trust ETF in January 2024. The fund reached a peak value of approximately $70 billion.
The Significance of Fink's Reversal
This public acknowledgment from Wall Street's most powerful asset manager validates Bitcoin's position in institutional portfolios. BlackRock manages $13.5 trillion in total assets under management. The firm's embrace of Bitcoin legitimizes cryptocurrency for conservative institutional investors who previously avoided the asset class.
IBIT experienced $2.3 billion in net outflows during November 2025, Cointelegraph reported. The withdrawals included $463 million on November 14 and $523 million on November 18. BlackRock business development director Cristiano Castro maintained confidence in ETFs as "liquid and powerful instruments" despite the outflows.
Bitcoin options tied to IBIT have become the ninth most traded in US markets. According to CoinDesk, over 7.7 million contracts were active as of December 2, 2025. The options market surpassed activity in gold ETFs and several major technology stocks. This trading volume demonstrates growing institutional appetite for Bitcoin exposure through regulated vehicles.
We reported that BlackRock's IBIT attracted over $18 billion in institutional assets during Q2 2025 despite minimal mainstream media coverage. Institutional Bitcoin ETFs accumulated over $65 billion in assets under management by April 2025. This adoption occurred largely without traditional financial press attention.
Reshaping Traditional Finance
Fink's transformation reflects broader acceptance of Bitcoin within conventional financial institutions. The CEO acknowledged Bitcoin's volatility presents challenges for traders attempting to time markets. He cautioned that leveraged players continue to exert heavy influence on price movements. However, Fink identified Bitcoin as useful portfolio insurance for long-term holders.
The BlackRock CEO positioned tokenization of financial assets as an even larger opportunity than Bitcoin itself. Fink and COO Rob Goldstein published their vision in The Economist this week. They proposed that all securities could eventually exist in digital form on blockchain infrastructure. This would reduce friction costs and simplify investing processes.
Competing spot Bitcoin ETFs from Grayscale, Bitwise, Fidelity, ARK 21Shares, Invesco Galaxy, and VanEck collectively manage substantial assets. Yahoo Finance reports that IBIT became BlackRock's most profitable product despite being less than two years old. The fund charges 0.25% in fees compared to 0.03% for traditional equity index funds.
Skeptics note that Bitcoin remains subject to sharp price swings during macroeconomic shifts. Fink himself described three drawdowns of 20-25% since IBIT's creation. Traditional finance institutions continue evaluating Bitcoin's role as either speculative asset or legitimate portfolio diversifier. The Senate must still vote on the CLARITY Act before Wall Street firms can fully pursue tokenization efforts.
