BlackRock CEO Larry Fink, once a bitcoin bystander, seems to be warming up to the crypto asset, hinting in his latest investor letter that Bitcoin could challenge the dollar’s reign if the US debt situation spirals.
Fink’s 2025 letter, released today, mentioned “bitcoin” seven times, a stark increase from the single mention in his 2024 letter which briefly acknowledged BlackRock’s Bitcoin ETF (IBIT) launch as part of an effort to improve liquidity in less transparent markets.
This year, Fink highlighted IBIT’s impressive $40 billion in net inflows, noting that over half of the demand originated from retail investors, with a remarkable 75% of these investors being first-time iShares customers.
Beyond celebrating IBIT’s success, Fink pointed to a bigger picture: the fragility of the dollar’s global dominance. He cautioned that unchecked US debt and ballooning deficits could lead investors to perceive bitcoin as a “safer bet” than the dollar, potentially undermining America’s economic advantages.
Fink lauded decentralized finance as an “extraordinary innovation” for its potential to create faster, cheaper, and more transparent markets. However, he also acknowledged that this very innovation could pose a risk to the US if bitcoin gains more trust than the greenback.