The CEO of the largest asset manager in the world says that Bitcoin (BTC) could see drastically higher prices if sovereign wealth funds begin accumulating.
Speaking with Bloomberg at the World Economic Forum (WEF) event in Davos, Switzerland, BlackRock CEO Larry Fink says that sovereign wealth funds may drive the price of Bitcoin higher as they look to hedge against “local fears” such as inflation and political or economic uncertainty.
[adinserter block="1"]“If you’re frightened of the debasement of your currency or you’re frightened of the economic or political stability of your country, you can have an internationally based instrument called Bitcoin that will overcome those local fears.
And so I’m a big believer in the utilization of that as an instrument, and so if that becomes true and you see that it could be a proper hedge against hope securities or equities, the question is, could you see it be a 2% or 5% allocation?
I was with a sovereign wealth fund during this week and that was the conversation. Should we have a 2% allocation? Should we have a 5% allocation? If everybody adopted that conversation, it would be $500,000, $600,000, $700,000 per Bitcoin.”
Fink’s BlackRock has embraced Bitcoin over the last year, building a $50 billion stash to back its iShares Bitcoin Trust ETF (IBIT) which went live in early 2024. In November, it was found that IBIT had surpassed BlackRock’s gold ETF (IAU) in terms of net assets – reaching over $33 billion – despite the gold ETF launching nearly two decades earlier in 2005.
At time of writing, Bitcoin is trading at $104,607.
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