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BlackRock CEO Larry FinkEugene Gologursky/Getty
BlackRock CEO Larry Fink has gone back on his once-cautious outlook on Bitcoin, referring to the cryptocurrency as a 'reserve currency' alternative to the US dollar in an interview on CBS's 60 Minutes. But the most entertaining response comes from Bitcoin evangelist Max Keiser, who described Fink's comment on Bitcoin as "Employee of the Month".
A former Wall Street stockbroker, Keiser, is often known for his early and relentless advocacy of Bitcoin. He serves as Senior Bitcoin Advisor to El Salvador’s government.
Fink, who once called Bitcoin “the domain of money launderers and thieves," told CBS on Oct. 13 that he now sees crypto playing a role similar to gold in diversified portfolios. "There is a role for crypto in the same way there is a role for gold," Fink said. Fink also admitted his cautious stance, saying, “The markets teach you, you have to always relook at your assumptions.”
He added that while the asset class should not be considered a major portfolio holding, it can provide balance for investors seeking alternatives. "This is not a bad asset, but I don't believe that it should be a large component of your portfolio."
The comments are the latest sign of how Wall Street institutions are increasing their stakes in crypto.
Additionally, sovereign wealth funds and public companies continue to tilt towards digital assets. For many Bitcoiners, Fink's comments represent a coming-of-age story in terms of institutional adoption, where the world's largest asset manager has identified that crypto is not just retail-driven speculation but forms part of an overarching investment thesis.
BlackRock’s iShares Bitcoin Trust (IBIT) has quickly taken the first place as the largest holder of bitcoin, with more than 750,000 BTC (3% of supply), both ahead of MicroStrategy and government hoards such as the U.S. and China.
Public entities currently hold a combined 358,444 BTC in their treasuries, with MicroStrategy, Marathon, Tesla, and Robinhood hosting the largest bitcoin troves among companies. Private firms like Block. one and Tether also hold huge reserves.
ETFs and trusts currently rule the roost, comprising over 1.25 million BTC between them in IBIT, Fidelity’s FBTC, and Grayscale’s GBTC. All told, funds, companies, and governments hold about 18% of the supply of Bitcoin — a deep level of institutional control that may confer greater stability.
