From "Money Laundering Index" to Trillion-Dollar ETF Leader: BlackRock CEO Larry Fink's Crypto Journey

“My thought process is always evolving.” On December 3, at the New York Times DealBook Summit, BlackRock CEO Larry Fink candidly reflected on his shift in stance towards cryptocurrency.

This statement stands in sharp contrast to his public remarks eight years ago—in 2017, he described Bitcoin as “an index of money laundering.” Today, the world’s largest asset management company under his leadership has launched the largest spot Bitcoin ETF in the US, managing around 800,000 bitcoins with a total value approaching $100 billion.

01 Evolution of Perspective: From Rejection to Acceptance

Larry Fink’s journey with cryptocurrency exemplifies the profound transformation in traditional financial giants’ understanding of digital assets. At the New York Times DealBook Summit, this once outspoken critic now calmly stated that his views have undergone “a significant shift.”

This transformation did not happen overnight. Fink acknowledged that years of interactions with clients and discussions with policymakers gradually changed his view on Bitcoin. He candidly admitted that his shift from mainly associating cryptocurrency with money laundering to now handling billions of dollars worth of BTC is “a very obvious public example of a major change in perspective.”

It is worth noting that Fink’s acceptance of Bitcoin is not without reservations. He described Bitcoin as a “fear asset,” noting that investors typically buy it when concerned about financial security, geopolitical instability, or the devaluation of traditional assets.

02 A Trillion-Dollar Empire: The Astonishing Growth of BlackRock’s Bitcoin ETF

Fink’s shift in perspective has gone hand in hand with BlackRock’s active involvement in the crypto sector. BlackRock’s iShares Bitcoin Trust (IBIT) has become a major force in the cryptocurrency market.

According to the latest data, IBIT now holds approximately 800,000 bitcoins, valued at nearly $98 billion and rapidly approaching the $100 billion assets under management milestone. The speed of this growth is remarkable—IBIT has set a historic record for capital inflows in less than two years, at times attracting $4 billion in a single week.

Compared to traditional ETF giants like SPY and QQQ, IBIT has achieved in just two years what took them many years to reach. Currently, IBIT manages about 4% of the global Bitcoin supply, meaning that BlackRock controls one out of every 20 bitcoins on average.

Cristiano Castro, Head of Business Development for BlackRock Brazil, revealed that the company earns more revenue from its Bitcoin ETF than from any other product it operates, making the Bitcoin fund its top earner. This achievement is especially notable given that BlackRock manages over 1,400 ETFs globally, with total assets exceeding $13.4 trillion.

03 Market Turbulence: Outflows and Price Volatility

Despite the significant success of BlackRock’s Bitcoin ETF, the volatility of the cryptocurrency market remains evident. There have been some noteworthy recent developments.

On November 25, IBIT recorded an outflow of about $523 million—the fund’s largest single-day redemption since its launch in January 2024. Throughout November, IBIT saw net outflows exceeding $2.3 billion.

The market reacted swiftly and dramatically, with the price of Bitcoin dropping below the $87,000 level, hitting a seven-month low. As of the latest data on December 5, Bitcoin’s price continued to fall below $91,000, down 1.87% in the past 24 hours.

This wave of outflows may be related to some investors reallocating assets from Bitcoin to gold. The market is once again questioning whether Bitcoin can serve as a safe haven asset or replace gold’s role.

04 Ecosystem Expansion: A Crypto Strategy Beyond ETFs

BlackRock’s involvement in cryptocurrency goes far beyond its Bitcoin ETF. The company’s crypto strategy is multi-layered and comprehensive.

BlackRock is developing technology to tokenize a variety of assets, including real estate, stocks, and bonds. Larry Fink pointed out that global digital wallets hold over $4.5 trillion in crypto assets, stablecoins, and tokenized assets, most of which are outside the United States.

Fink believes tokenization could allow crypto entrants to access traditional long-term products such as retirement funds. He described Bitcoin and crypto as having a similar role to gold.

Former BlackRock employees are also actively participating in building the crypto ecosystem. Two former members of BlackRock’s digital asset division founded HelloTrade, a blockchain-based, mobile-first trading platform, after leaving the company. HelloTrade recently completed a $4.6 million seed round.

05 Industry Impact: The Convergence of Traditional and Crypto Finance

Larry Fink’s change in stance and BlackRock’s success in the crypto space reflect the growing trend of convergence between traditional finance and the crypto world. This trend is reshaping the entire financial industry landscape.

BlackRock’s foray into crypto has had a significant demonstration effect. As the world’s largest asset manager, its actions send a clear signal to other traditional financial institutions. Fink himself now views Bitcoin as a hedging tool within investment portfolios—a view increasingly accepted by institutional investors.

Market analysts note that spot Bitcoin ETF inflows are the main driving force for Bitcoin’s momentum in 2025. BlackRock’s Bitcoin ETF is the only fund to achieve net positive inflows in 2025, further cementing its leadership position in the market.

As institutional investors continue to flood into the Bitcoin market, the evolution of this sector warrants close attention. Increased institutional participation will undoubtedly bring more attention and capital to Bitcoin, but it may also alter the market dynamics and long-term trajectory of this crypto asset.

Outlook

As of December 5, Bitcoin’s price is fluctuating around $91,000, while BlackRock’s Bitcoin ETF IBIT continues to maintain assets under management close to $100 billion.

At the summit, sitting alongside Coinbase CEO Brian Armstrong, Fink stated, “The probability of Bitcoin going to zero is zero.” Armstrong added, “I see a huge and broad use case for Bitcoin.”

When a financial giant who once called Bitcoin “an index of money laundering” now manages 4% of the world’s Bitcoin supply, the boundary between traditional finance and the crypto world is becoming increasingly blurred in his hands.