BlackRock CEO Larry Fink says he is no longer concerned about excessive leverage in the Bitcoin market, signaling a shift in his view on the cryptocurrency's stability. Speaking to CNBC on Wednesday, Fink noted that speculative positions have been "washed out," making Bitcoin more stable at current price levels. The comments come as the world's largest asset manager continues to embrace digital assets after years of skepticism.
Fink's Changing View on Bitcoin
Fink admitted that he "was always worried about the leverage in Bitcoin and crypto," but said that dynamic has largely changed. "That's why we had to wash out," he added. "And I think there's more stability at these levels here." The remarks mark a significant evolution for the BlackRock chief, who in 2017 called Bitcoin an "index of money laundering." His stance began to shift in 2023 when BlackRock filed for a spot Bitcoin ETF, which has since become the industry's largest. Fink has since described Bitcoin as "digital gold," an "international asset," and a portfolio diversifier that can hedge against currency debasement.
AI Driving Profitability and Market Optimism
Much of the interview focused on artificial intelligence rather than cryptocurrencies. Fink argued that demand for computing infrastructure continues to outpace supply and that the United States risks falling behind. He expressed strong optimism about financial markets over the coming year, attributing it to advances in AI. "I'm very bullish on the markets over the next 12 months," he said. "I think the technological revolution is going to power better margins for more companies." Fink pointed to BlackRock itself as an example, noting the firm raised its margins by 260 basis points over the last 12 months, largely through increased use of technology. "We're able to use technology to process more trades, to process more activities," he explained, highlighting how AI is transforming internal operations.