Sovereign funds were buying the decline in bitcoin according to Larry Fink, CEO of BlackRock.
“We’re seeing more and more legitimate, long-time investors investing in it,” Fink said Wednesday at the New York Times DealBook Summit in New York. “I can tell you that there are a certain number of sovereign funds […] they gradually add to $120,000, $100,000; I know they bought more in the ’80s.”
The fact that state actors have purchased bitcoin is not news: Abu Dhabi’s Mubadala Investment Company and Luxembourg’s sovereign wealth fund are among those that have already disclosed investments in bitcoin spot ETFs.
The fact that sovereign wealth funds have increased their positions as bitcoin has plunged below the $90,000 level in recent weeks is notable, however, as Fink continues: “They establish a longer position and then you own it over the years… It’s not a transaction, you own it for a specific purpose. »
Fink’s remarks reflect a growing shift in how some of the world’s biggest investors are approaching Bitcoin. Even if the price of the asset remains volatile, institutional interest – particularly from sovereign funds managing national wealth – demonstrates confidence in the long-term resilience of the asset.
Fink, who once rejected Bitcoin, gradually became one of its most prominent institutional advocates. Under his leadership, BlackRock launched iShares Bitcoin Trust (IBIT), which has attracted billions in assets since its debut in early 2024 and become the asset manager’s most profitable exchange-traded fund (ETF).
At the DealBook event, Fink again highlighted the appeal of Bitcoin as a hedge against growing government debt and inflation. “I think there is a really big use case,” he said, describing the asset less as a vehicle for speculation and more as a way to protect against currency depreciation.
