BlackRock CEO Larry Fink says sovereign wealth funds are considering allocating 2-5% of their portfolios to Bitcoin, potentially driving its value significantly higher.
Larry Fink, the CEO of BlackRock, disclosed that he is in discussions with sovereign wealth funds about putting between 2% and 5% of their assets into Bitcoin.
Fink stated that Bitcoin prices may increase to $500,000, $600,000, or even $700,000 if it is widely adopted. He added that more people are thinking about Bitcoin as a hedge against currency devaluation as a result of worries about political and economic instability.
BlackRock CEO Reaction
Following the spot Bitcoin ETF‘s biggest debut in its history, Fink made these remarks. The iShares fund managed by BlackRock has more than 546,000 Bitcoins worth $60 billion.
Other prominent figures in the financial industry, like Robin Vince, CEO of BNY, and Brian Moynihan, CEO of Bank of America, have voiced optimism about Bitcoin and blockchain technology, emphasizing its potential in the financial system over the next ten to twenty years.
“If the rules come in and make it a real thing that you can actually do business with, you’ll find that the banking system will come in hard on the transactional side of it,” Brian Moynihan, CEO of Bank of America, told CNBC at Davos.
Major banks are expected to start providing crypto custody services around 2024, according to analysts. The increasing popularity of Bitcoin among sovereign wealth funds indicates that the asset class is becoming more widely accepted.
