Larry Fink Reconsiders His Crypto Skepticism as BlackRock’s ETF Soars

Larry Fink has spent much of his career voicing doubts about crypto. For years, the BlackRock chief executive was among the most outspoken critics in traditional finance. Now, his view is changing, and so is his firm’s role in the digital asset market.

Speaking at the New York Times DealBook conference, Fink acknowledged that his position on crypto has shifted. He told the audience that his thinking has evolved, a phrase he deliberately echoed from an earlier onstage conversation that referenced comments made by U.S. Treasury Secretary Scott Bessent about trade policy.

That change in perspective comes as BlackRock has emerged as a major force in the crypto investment landscape. The firm’s iShares Bitcoin Trust ETF launched at the start of 2024 alongside several competing products. It quickly rose above its rivals, becoming the largest bitcoin exchange-traded fund listed in the U.S.

The fund now holds more than $70 billion in assets, making it the fastest-growing ETF globally. It is now BlackRock’s most profitable offering and one of the biggest single holders of Bitcoin, alongside software company Strategy.

During the onstage conversation, DealBook editor Andrew Ross Sorkin reminded Fink of his past criticism, including a remark in which he described crypto as a vehicle for illicit activity. Fink did not shy away from the comment, briefly adding that theft had also been part of his earlier concerns.

Despite his more measured tone, Fink was careful not to downplay the risks. He noted that Bitcoin remains prone to sharp price swings, citing recent sell-offs that have erased significant value across crypto markets. According to Fink, much of that instability stems from heavy use of leverage among certain traders, which can amplify both gains and losses.

While Bitcoin often dominates headlines, Fink suggested that the deeper promise of blockchain technology lies elsewhere. Like many executives from traditional finance, he highlighted tokenization as a potentially transformative development.

In his remarks, Fink said moving stocks, bonds, real estate, and infrastructure onto digital ledgers could strip out layers of inefficiency. The goal, he explained, is to reduce friction, simplify investing, and allow capital to move more freely across markets.

However, broader adoption still hinges on regulatory clarity. Firms are awaiting the U.S. Senate’s action on the Clarity Act, a proposed legislation for the crypto market structure. The bill aims to define which regulators oversee various digital assets and would cement policy gains made during the Trump administration.

Coinbase chief executive Brian Armstrong, who shared the stage with Fink, said he hopes the Senate will vote on the measure within the next few months. If that happens, Armstrong said, the U.S. could lay the groundwork for more stable crypto markets, with fewer incentives for excessive leverage and high-risk behavior.

As the regulatory landscape gains additional clarity, we could see established firms like Riot Blockchain Inc. (NASDAQ: RIOT) accelerating their push to penetrate even more segments of the market and expanding internationally.

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