According to BlackRock CEO Larry Fink, sovereign wealth funds have been buying bitcoin’s decline.
“We’re seeing more and more legitimate, long-term investors investing in it,” Fink said Wednesday at the New York Times’ DealBook Summit in New York. “I can tell you that there are a number of state funds […] which gradually add on the prices of 120,000, 100,000 dollars; I know they bought more at the 80,000 levels.”
That state actors have been buyers of bitcoin is not new – Abu Dhabi’s Mubadala Investment Company and Luxembourg’s sovereign wealth fund are among those that have previously disclosed investments in spot bitcoin ETFs.
However, it is significant that sovereign wealth funds have been adding to positions as bitcoin has fallen below the $90,000 level in recent weeks, as Fink continued: “They establish a long position and then you own it for years… It’s not a trade, you own it for a purpose.”
Fink’s remarks reflect a growing shift in the way some of the world’s biggest investors are approaching bitcoin. While asset prices remain volatile, institutional interest – particularly from sovereign wealth funds that manage the nation’s wealth – signals confidence in the asset’s long-term resilience, SEEbiz reports.
Fink, who once dismissed bitcoin, has gradually become one of its most prominent institutional proponents. Under his leadership, BlackRock launched the iShares Bitcoin Trust (IBIT), which has attracted billions in assets since its debut in early 2024 and has become the most profitable exchange-traded fund (ETF) for asset managers.
At the DealBook event, Fink reiterated bitcoin’s appeal as a hedge against rising national debt and inflation. “I believe there’s a big, big use for it,” he said, pitching the asset less as a vehicle for speculation and more as a way to hedge against currency devaluation.
