Sovereign wealth funds have been capitalizing on the dip in bitcoin , as noted by BlackRock CEO Larry Fink.
“We’re observing an increase in genuine, long-term investors entering the market,” Fink stated on Wednesday at the New York Times DealBook Summit. “Several sovereign funds are adding incrementally at $120,000, $100,000; I know they bought more when it dipped to the $80s.”
The notion that state actors are investing in bitcoin isn’t new — firms like Abu Dhabi’s Mubadala Investment Company and Luxembourg’s sovereign wealth fund have previously announced their investments in spot bitcoin ETFs.
It is significant that SWFs have been increasing their holdings while bitcoin fell below the $90,000 mark in recent weeks, as Fink elaborated: “They’re constructing a long-term position, viewing it as an asset to own over years … It’s not merely a trade; it’s for a purpose.”
Fink’s comments illustrate a shifting perspective among some of the world’s largest investors concerning bitcoin. Despite the asset’s price volatility, growing institutional interest — especially from sovereign funds managing national wealth — signifies a belief in the long-term strength of the asset.
Fink, who once downplayed bitcoin, has progressively emerged as one of its leading institutional supporters. Under his direction, BlackRock launched the iShares Bitcoin Trust (IBIT), which has attracted billions in assets since its launch in early 2024, becoming the asset manager’s most successful exchange-traded fund (ETF).
During the DealBook event, Fink again highlighted bitcoin’s role as a safeguard against rising government debt and inflation. “I see a substantial use case for it,” he mentioned, portraying the asset as more than just a speculative vehicle, but rather a means to combat currency devaluation.
