BlackRock CEO Predicts Bitcoin Boom Driven by Sovereign Wealth Funds

Larry Fink, the head of the world’s largest asset management firm, has suggested that Bitcoin could experience a significant surge in value if sovereign wealth funds begin to invest in the digital asset.

Speaking at the World Economic Forum in Davos, Switzerland, Fink highlighted the potential role of Bitcoin as a hedge against various economic and political concerns.

He explained that in times of uncertainty, such as rising inflation or instability in a country’s economy or political system, Bitcoin offers an internationally recognized alternative that can address these fears.

According to Fink, this could lead sovereign wealth funds to consider allocating a small percentage of their portfolios—perhaps 2% to 5%—to Bitcoin. He speculated that widespread adoption of this strategy could drive Bitcoin’s price to unprecedented levels, potentially reaching between $500,000 and $700,000 per coin.

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BlackRock, the firm led by Fink, has increasingly embraced Bitcoin over the past year. It launched the iShares Bitcoin Trust ETF (IBIT) in early 2024, backed by a $50 billion reserve. By November, the Bitcoin ETF had surpassed the company’s long-standing gold ETF (IAU), which debuted in 2005, in terms of net assets.

The Bitcoin fund now manages over $33 billion, underscoring the growing institutional interest in the cryptocurrency.

Alexander Stefanov