They say that only a cow doesn’t change its mind and that a person’s views can change by 180°. It turns out that Larry Fink, the CEO of one of the most powerful investment institutions, can drastically change his opinion on a given topic. The CEO of BlackRock initially spoke only negatively about bitcoin and cryptocurrencies, but it took only a few years for him to become a staunch supporter of digital assets. What made Larry Fink change his perception of bitcoin and the cryptocurrency industry so dramatically?
BlackRock’s Initial Skepticism and Hostility Towards Digital Assets
Cryptocurrencies, and Bitcoin in particular, have always stirred extreme emotions among investors and financial institutions. BlackRock, the world’s largest asset manager, is no exception. Its history with cryptocurrencies is extremely interesting, especially in the context of recent statements by its CEO, Larry Fink.
The CEO of BlackRock has long been one of the most vocal critics of Bitcoin. In 2017, Fink described cryptocurrencies as a “money laundering index,” suggesting that their main use was for illegal activities. At the time, BlackRock, like many other financial institutions, viewed Bitcoin with a great deal of skepticism, fearing its instability and potential regulatory threats. All statements by the CEO of BlackRock about cryptocurrencies and Bitcoin were negative and filled with fear. Fink emphasized that cryptocurrencies were a dangerous game that had nothing to do with money or any value. The following years were to bring drastic changes to this conservative approach.
Bitcoin Goes Mainstream? BlackRock Starts to Transform Its Approach to BTC
As cryptocurrencies have begun to gain more mainstream acceptance and their technology has matured, BlackRock’s approach has gradually changed. In 2020, the company announced that it was considering investing in cryptocurrencies as a way to diversify its portfolio and hedge against inflation.
This was the first sign that BlackRock was beginning to see the potential of cryptocurrencies. This was quite shocking news, considering that Fink had just called cryptocurrencies a means used by criminals and cybercriminals. It is worth adding that since the end of 2020, Fink has been criticizing cryptocurrencies less and less, and his statements in the media suggested that he sees some potential in them.
A breakthrough moment: a bitcoin-based spot ETF
The breakthrough came in 2024, when BlackRock launched a spot ETF fund based on Bitcoin. It was an event that generated a lot of interest in the world of finance and technology. An ETF (Exchange Traded Fund) is an investment fund listed on a stock exchange that allows investors to buy shares that reflect the price of the underlying asset – in this case, Bitcoin.
The introduction of such a product by the largest player in the asset management market was not only confirmation of the growing acceptance of cryptocurrencies, but also a signal that Bitcoin is becoming an integral part of the global financial system. It is worth adding that BlackRock and its IBIT fund have been doing the best since the very beginning of the BTC ETF craze. Wall Street’s interest in Bitcoin (through BTC ETF spot funds) became so great that it triggered a bull market even before the BTC halving, which did not occur until mid-April 2024. Many investors consider January 10 as a kind of beginning of the bull market, because it was thanks to the actions of BlackRock and 8 other investment firms that Bitcoin was able to reach its ATH long before the halving.
Larry Fink – From Critic to Enthusiast
Larry Fink, who was previously very critical of Bitcoin, now speaks highly of Satoshi Nakamoto’s cryptocurrency. In one of his recent statements, he emphasized that Bitcoin has the potential to revolutionize the way we think about money and the storage of value. Fink noted that the blockchain technology on which Bitcoin is based can bring significant benefits in the context of security and transparency of financial transactions. In an interview, Fink stated:
As you know, I was a complete opponent and skeptic when it comes to bitcoin. I looked back at my beliefs from 5 years ago, dug deep into bitcoin and I know I was wrong then. Today I believe bitcoin is a global financial instrument and digital gold.
BlackRock smiles at cryptocurrencies, pumping billions of USD into the industry!
BlackRock’s history of cryptocurrency perceptions reflects a broader trend in the financial world. Initial skepticism and concerns gave way to understanding, acceptance, and ultimately enthusiasm. The case of Larry Fink and his changing attitude toward Bitcoin illustrates just how dynamic and rapidly evolving the cryptocurrency market is.
BlackRock, by launching a Bitcoin spot ETF, has not only reaffirmed its commitment to cryptocurrencies but also signaled to other financial institutions that it’s time to take this asset class seriously. It’s a milestone in cryptocurrency history that could open the door to even greater adoption and acceptance around the world.
It is worth following BlackRock’s next steps and Larry Fink’s statements, as they may indicate the direction in which the cryptocurrency market will go in the coming years.
