BlackRock’s Larry Fink Admits Bitcoin Misjudgment, Cites $70B ETF Success as Proof

Quick Breakdown

• Larry Fink reveals evolution from 2017 crypto skepticism to BlackRock’s $70 billion iShares Bitcoin Trust (IBIT).
• Calls Bitcoin “an asset of fear” as price falls amid US-China trade deal hopes and Ukraine war.
• IBIT saw $2.3 billion outflows in November despite overall ETF success.​​

 

BlackRock CEO Larry Fink spoke at The New York Times DealBook Summit on Wednesday, acknowledging a dramatic change in his views on cryptocurrency. In 2017, he linked Bitcoin primarily to money laundering demands worldwide. Now, BlackRock runs the leading Bitcoin ETF, IBIT, which hit $70 billion in assets after the US Securities and Exchange Commission approved it in January 2024.​

Fink shared the stage with Coinbase CEO Brian Armstrong, stressing his opinions evolve with evidence. He highlighted BlackRock’s billions in BTC exposure as proof of this pivot. Yet he cautioned that Bitcoin suits traders skilled at timing, given its recent swings on positive global news such as a US-China trade pact and signals of peace in Ukraine.​

JUST IN: BlackRock CEO Larry Fink admits he was wrong about crypto. pic.twitter.com/yzsEGXYBCo

— Watcher.Guru (@WatcherGuru) December 3, 2025

Fink labels Bitcoin ‘Asset of Fear’

Fink described Bitcoin as “an asset of fear,” tying its price drop to a decline in global tensions. This contrasts his firm’s ETF push, where IBIT leads competitors from Grayscale, Bitwise, Fidelity, ARK 21Shares, Invesco Galaxy, and VanEck. Recent data shows IBIT lost $2.3 billion net in November, with big days like $463 million out on November 14 and $523 million on November 18.​

BlackRock’s business development director, Cristiano Castro, remains upbeat on ETFs as liquid tools. This comes amid broader institutional crypto adoption, such as SoFi’s launch as the first US national bank for crypto trading and Kraken’s EU crypto-collateral futures.​

IBIT outflows highlight volatility risks

November outflows tested IBIT, yet BlackRock holds strong in spot BTC ETFs. Fink’s shift mirrors Wall Street warming to digital assets under more straightforward rules. His 2017 stance predated Bitcoin’s bull runs and ETF approvals, showing how data reshapes views.​​

BlackRock CEO Larry Fink’s journey from Bitcoin skeptic to ETF champion underscores a broader institutional embrace of digital assets. While IBIT highlights current crypto engagement, Fink sees asset tokenization as the “next major financial revolution.” This strategic pivot, exemplified by their BUIDL fund, signals BlackRock’s commitment to transforming traditional finance through blockchain technology over the coming decades.