BlackRock CEO Admits He Was 'Wrong' About Bitcoin as Institutional Adoption Accelerates

BlackRock's Dramatic Reversal on Bitcoin

Larry Fink, CEO of the world's largest asset manager BlackRock, has publicly acknowledged he was "wrong" about Bitcoin, marking a significant shift in institutional sentiment toward cryptocurrency.

Speaking at the New York Times DealBook Summit alongside Coinbase CEO Brian Armstrong, Fink retracted his 2017 statement that cryptocurrencies were an "index for money laundering," now describing Bitcoin as a legitimate asset ^[1].

"I have very strong opinions. That doesn't mean I'm not wrong. But when you have strong opinions, you have to test yourself and question them," Fink explained. "This is a very blatant public example of a major change in my opinion" ^[1].

The CEO attributed his evolving perspective to ongoing dialogue with thousands of clients and policymakers, demonstrating how institutional views on digital assets have transformed over the past seven years ^[1].

Record-Breaking ETF Performance

Fink's change of heart aligns with the exceptional performance of BlackRock's iShares Bitcoin Trust (IBIT), which has become one of the most successful exchange-traded products in recent years. Since its approval in January 2024, IBIT has attracted massive capital inflows and now manages over $71 billion in Bitcoin ^[1].

The ETF's popularity has been so strong that it recently entered the top 10 list of US-listed stocks with the most open options contracts ^[2]. Remarkably, IBIT options have been more actively traded than SPDR gold ETF contracts, despite gold prices surging 50% this year while Bitcoin declined over 2% during the same period ^[2].

The demand has prompted Nasdaq ISE to file a proposal with the Securities and Exchange Commission to expand the trading capacity of IBIT options ^[2].

Market Recovery and Fresh Inflows

After a difficult November that saw redemptions exceed $4.3 billion across US spot Bitcoin ETFs, the market has shown signs of recovery ^[3]. IBIT recently broke its outflows streak with $120.1 million in net daily inflows, the highest among all US Bitcoin ETFs for that trading session ^[2].

Data from Farside Investors indicates that US spot Bitcoin funds have flipped back into net inflows, with money returning to key products like IBIT and FBTC ^[3]. Analysts note that even modest positive flows can have an outsized impact on Bitcoin's price, as spot ETFs must purchase actual Bitcoin in the market, removing supply during a period when new issuance remains limited following halving events ^[3].

Traditional Finance Embraces Bitcoin Allocation

In another sign of growing institutional acceptance, Bank of America has informed its wealth management clients that allocating 1-4% of their portfolio to Bitcoin is "appropriate" ^[2][3]. This recommendation from one of America's largest banks represents a significant milestone in cryptocurrency's journey toward mainstream financial acceptance.

The Bitcoin price has responded positively to these developments, rebounding from recent lows near $80,000 to trade around $92,800 ^[3]. On-chain data suggests the recent selloff was driven more by leverage and short-term speculation than a fundamental shift in long-term conviction, with exchange balances declining as coins move back into cold storage ^[3].

As institutional players like BlackRock and Bank of America increasingly embrace Bitcoin, the cryptocurrency appears to be solidifying its position as a recognized asset class within traditional finance portfolios.