From “Money-Laundering Tool” to “Institutional Darling”: How Larry Fink Turned BlackRock’s Bitcoin ETF Into a Wall Street Focus

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Fink, who once publicly labeled cryptocurrency as a “money-laundering index,” acknowledged at the New York Times DealBook Summit in late 2025, “my thought process has evolved.” His statement has sparked widespread market attention.

Why Did Fink Change His View?

Fink’s shift did not happen overnight. Over the past few years, the crypto asset ecosystem has changed dramatically: regulatory frameworks have become more robust, institutional participation has surged, and regulated financial products—such as IBIT—have gained traction. These developments have helped crypto transition from its volatile early days toward mainstream acceptance.

Fink and BlackRock’s journey from skepticism to publicly recognizing Bitcoin as an “alternative asset” reflects the broader evolution of the financial sector.

In a recent interview, Fink also emphasized that Bitcoin and gold serve similar purposes, acting as hedges against inflation and currency depreciation.

The Remarkable Rise of IBIT

IBIT, BlackRock’s spot Bitcoin ETF launched in 2024, has seen explosive growth since its inception. It now manages over $70 billion in assets. This makes it the largest Bitcoin ETF in the United States and one of BlackRock’s standout products.

Notably, IBIT’s Bitcoin holdings now exceed 3% of global supply. This massive position is accelerating Bitcoin’s integration with traditional finance and reinforcement of the role of crypto assets in institutional portfolios.

Institutional and Sovereign Fund Inflows Boost Market Confidence

In addition to major wealth managers and hedge funds, some sovereign wealth funds have reportedly increased their Bitcoin holdings during price corrections. At the summit, Fink disclosed that several government-backed funds continued to buy Bitcoin when it fell below key support levels, focusing on long-term allocation.

Such capital inflows strongly endorse the market, especially given crypto’s past reputation for high risk and volatility. Continued allocation by institutional and sovereign investors could further drive mainstream financial acceptance of crypto assets.

Opportunities and Risks: Volatility and ETF Model Debates

While Fink is bullish on Bitcoin’s long-term value, he cautioned that risks remain: crypto assets still depend heavily on leveraged market participants, so volatility will persist.

Meanwhile, industry debate continues: does holding Bitcoin through ETFs undermine its core principle of decentralization and self-custody? Some crypto traditionalists argue that ETFs reintegrate Bitcoin into traditional finance, contradicting its foundational ideals.

This divergence highlights the ideological clashes that inevitably arise as Bitcoin transitions from a disruptive force to mainstream acceptance.

Summary and Outlook

From “money-laundering index” to “alternative asset,” Larry Fink’s transformation underscores the structural maturation of the crypto market. Enhanced regulatory frameworks, institutional capital, increasing market size, and evolving financial products are rapidly pushing cryptocurrency from a niche asset into the mainstream. IBIT’s success has set a clear industry benchmark. Still, for individual investors, the overall trend is positive. However, caution is warranted: Bitcoin’s high volatility, large capital flows, and ongoing debates over the ETF model may continue to shape the market’s future.

Whether crypto assets can ultimately become stable asset classes like gold, bonds, or equities remains to be seen. What’s certain is that the shift in stance by Fink and BlackRock marks a pivotal moment for the full integration of crypto markets with traditional finance.