BlackRock chief executive Larry Fink asserted that cryptocurrencies carry a role akin to gold in investment portfolios, calling Bitcoin “a decent tool for diversification” while warning that it should not form a major slice of one’s holdings.
Speaking on 60 Minutes on CBS, Fink said: “There is a role for crypto in the same way there is a role for gold … For those looking to diversify, it is not a bad asset, but I don’t believe that it should be a large component of your portfolio.”
Fink’s remarks mark a notable shift from earlier positions. In the past, he dismissed Bitcoin as a facilitator of money laundering, stating that none of his clients expressed interest in crypto. The evolution of his thought underscores how digital assets have moved further into mainstream investment discourse.
His comments come amid rising institutional engagement with digital asset markets, with BlackRock among firms championing the development of spot Bitcoin ETFs. The firm has also begun pushing into tokenization, envisioning the conversion of traditional financial products such as equities, bonds or real estate into digital token formats. Fink described tokenization of all assets as “the next wave of opportunity” over the coming decades.
Analysts view Fink’s balanced tone—acknowledging both potential and restraint—as calibrated for the climate of heightened volatility and regulatory uncertainty in crypto markets. He is signalling openness without forfeiting caution.
Some investors welcomed the endorsement as validation from one of finance’s most influential figures, though sceptics note that Fink’s insistence on limiting crypto to a small portfolio slice reflects enduring reservations.
Crypto proponents point out that Bitcoin’s often low correlation with equities or bonds—and its non-sovereign character—make it attractive as a diversification instrument. BlackRock itself in earlier internal research has characterised Bitcoin as a “unique diversifier,” citing its tendency to behave differently from traditional assets during episodes of macro stress.
Yet the environment remains fraught. Price swings, regulatory fragmentation across jurisdictions, and infrastructure challenges continue to deter widespread adoption. For instance, debates persist around how to regulate digital assets, custody risks, taxation, and classification.
Arabian Post – Crypto News Network
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