BlackRock's CEO, Larry Fink, envisages a future where Bitcoin's value could climb to $500,000 or even higher, as institutional adoption could play a pivotal role in its price surge. In a recent interview, he elaborated on how integrating Bitcoin into investment portfolios could escalate its value significantly.
During a conversation with Bloomberg at the World Economic Forum in Davos, Larry Fink outlined one of the most optimistic scenarios for Bitcoin. He referenced a discussion with a sovereign wealth fund where the possibility of Bitcoin allocation was explored.
"I was with a sovereign wealth fund this week, and Bitcoin allocation was the topic. Should it be 2% or 5%? If such discussions become widespread, Bitcoin could soar to $500,000, $600,000, or even $700,000," Fink remarked.
He was quick to clarify that he was not explicitly endorsing Bitcoin. "I’m not promoting it. That is not my intent," he added.
Fink's perspective parallels that of Coinbase CEO Brian Armstrong, who recently suggested that Bitcoin might eventually achieve multi-million dollar valuations. Fink further described cryptocurrencies as a "currency of fear," offering an alternative to those troubled by currency debasement or regional political and economic instability. "Bitcoin could serve as a globally acknowledged instrument to alleviate those local fears," he stated.
BlackRock has proactively increased its cryptocurrency involvement. In 2024, it became the first firm to receive approval from the US Securities and Exchange Commission (SEC) for a Bitcoin exchange-traded fund (ETF).
Under this ETF initiative, BlackRock has amassed substantial Bitcoin holdings, owning 569,343.23770 BTC valued over $60 billion according to current market prices. Data from Arkham Intelligence noted BlackRock's substantial Bitcoin acquisition of $600 million as this year's largest purchase.
Additionally, BlackRock’s iShares Bitcoin Trust ETF (IBIT) holds a prominent position as the largest Bitcoin ETF in the US, controlling 2.89% of the total Bitcoin market capitalization. On January 22, IBIT recorded inflows of $344.28 million, contrasting with other ETFs which saw little to no investment.
Beyond the US, BlackRock launched the iShares Bitcoin ETF in Canada on January 13 under the Cboe Canada ticker "IBIT", reflecting its international expansion in Bitcoin investments.