BlackRock Chief Executive Larry Fink revealed sovereign wealth funds have been steadily accumulating Bitcoin during the cryptocurrency's recent decline from its October peak above $125,000.
Fink disclosed the buying activity during a panel discussion at The New York Times DealBook Summit.
The world's largest asset manager CEO said nation-state investment vehicles added to positions incrementally at $120,000, $100,000, and in the $80,000 range.
Bitcoin currently trades around $92,000 after hitting an all-time high near $126,000 in early October.
Fink emphasized these institutions are building multi-year positions rather than speculating on short-term price movements. He characterized the approach as strategic accumulation for long-term portfolio diversification.
What Happened
Fink made the comments while sharing the stage with Coinbase CEO Brian Armstrong at the December 4 event. He framed Bitcoin as an "asset of fear" that investors turn to amid concerns about currency debasement and financial system stability.
Abu Dhabi's Mubadala Investment Company and Luxembourg's sovereign wealth fund are among those that have previously disclosed investments in spot Bitcoin exchange-traded funds. Mubadala recently held approximately $517.6 million in BlackRock's iShares Bitcoin Trust (IBIT) as of the third quarter.
Luxembourg allocated 1% of its $730 million Intergenerational Sovereign Wealth Fund to Bitcoin ETFs in October, becoming the first Eurozone nation to make a policy-based cryptocurrency investment. The Abu Dhabi Investment Council described Bitcoin as a store of value similar to gold in its long-term strategy.
BlackRock's IBIT launched in January 2024 and has become the firm's most profitable product line. The ETF reached $70 billion in assets in 341 days, the fastest growth in industry history.
Why It Matters
Sovereign wealth fund participation signals a significant shift in institutional attitudes toward cryptocurrency as a legitimate portfolio asset. Nation-state accumulation during price volatility demonstrates confidence in Bitcoin's long-term value proposition rather than short-term trading dynamics.
The buying strategy described by Fink represents dollar-cost averaging by some of the world's largest institutional [investors]. This approach allows sovereign funds to build exposure without betting on specific price levels in a notoriously volatile market.
Fink's evolution from Bitcoin skeptic to institutional advocate mirrors broader Wall Street acceptance of digital assets through regulated investment vehicles. Under his leadership, BlackRock has [positioned] itself as the primary gateway for traditional finance institutions seeking cryptocurrency exposure.
The CEO acknowledged Bitcoin remains heavily influenced by leveraged traders, noting IBIT has experienced three drawdowns of up to 25% since its debut. He warned that short-term trading requires exceptional market timing abilities most investors lack.
Fink framed Bitcoin's appeal as protection against government debt concerns, banking system risks, and currency weakness. This positioning differentiates cryptocurrency from traditional equity and bond investments that represent optimistic bets on economic growth.