The CEO of the world’s largest asset manager says Bitcoin (BTC) could see drastically higher prices as sovereign wealth funds start accumulating.
BlackRock CEO Larry Fink spoke to Bloomberg at the World Economic Forum (WEF) event in Davos, Switzerland say that sovereign wealth funds can drive the price of Bitcoin higher because they want to hedge against “local fears” such as inflation and political or economic uncertainty.
“If you fear the depreciation of your currency or if you fear the economic or political stability of your country, you can have an internationally based instrument called Bitcoin that will overcome these local fears.
And so I’m a big believer in using that as a tool, and if that becomes true and you see that it could be a good hedge against hopeful securities or stocks, then the question is, can you look at it as a 2% or 5% allocation?
I was at a sovereign wealth fund this week and that was the conversation. Should we have a 2% allocation? Should we have a 5% allocation? If everyone took that call, it would be $500,000, $600,000, $700,000 per Bitcoin.”
Fink’s BlackRock has embraced Bitcoin over the past year, building a $50 billion inventory to back its iShares Bitcoin Trust ETF (IBIT), which went live in early 2024. In November, IBIT was found to have surpassed BlackRock’s gold ETF (IAU) in terms of net assets – which reach over $33 billion – despite the gold ETF having launched almost two decades earlier in 2005.
At the time of writing, Bitcoin is trading at $104,607.
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