From "Money Laundering Tool" to Embrace: Why Did BlackRock's CEO Publicly Admit Being Wrong About Bitcoin?

At the New York Times DealBook Summit, BlackRock CEO Larry Fink admitted that his 2017 comment calling cryptocurrencies “tools for money laundering and thieves” was wrong. The moderator’s question cut to the core: “Now BlackRock owns the largest spot Bitcoin ETF. What happened?”

Fink responded, “I have strong opinions, but that doesn’t mean I can’t be wrong. Through constant self-examination and meeting thousands of clients and government leaders every year, my thought process has evolved, and my opinions have changed dramatically.”

01 Changing Perspectives

Larry Fink’s shift in perspective is arguably the most notable “cognitive evolution” in traditional finance. This financial giant, managing trillions of dollars in assets, went from publicly questioning to actively embracing crypto—a microcosm of the broader financial industry’s shifting stance on cryptocurrencies.

Fink admitted that he once primarily associated cryptocurrencies with money laundering, but now, with exposure to billions of dollars in BTC, this is “a very clear and public example of a major shift in my thinking.”

On December 3, 2025, this admission spread via social media, immediately attracting market attention.

Fink’s change of heart didn’t happen overnight. He once described Bitcoin as a “fear asset,” noting that after news of a US-China trade deal and a possible end to the war in Ukraine, crypto prices fell.

He said, “If you buy Bitcoin to trade, it’s a very volatile asset. You have to be very good at timing the market, and most people aren’t.”

02 Actions Speak Louder

BlackRock’s actions preceded Fink’s words in signaling a change in stance. On January 10, 2024, the US Securities and Exchange Commission (SEC) approved the first batch of spot Bitcoin exchange-traded funds.

BlackRock quickly launched the iShares Bitcoin Trust (IBIT), which peaked at around $70 billion in size.

Although IBIT saw net outflows of over $2.3 billion in November, BlackRock’s head of business development, Cristiano Castro, remained confident in ETFs as “highly liquid tools.”

More notably, as BlackRock was making public statements, its capital deployment had already begun. On November 20, 2025, BlackRock was reported to have directly purchased $62 million worth of Bitcoin.

On December 2, 2025, according to monitoring, BlackRock transferred 1,633.875 BTC, worth about $142.6 million, to Coinbase Prime.

03 Market Impact

Fink’s public admission quickly sent ripples through the crypto market. Analysts noted that endorsements from figures like Fink often trigger 10-20% price surges within 48 hours.

Meanwhile, on-chain analytics platforms show that BTC whale accumulation surged 15% over the past month, correlating with announcements from major companies like BlackRock.

On the trading side, investors are now focusing on BTC price movements during US hours, daily net inflows/outflows of spot Bitcoin ETFs, and CME Bitcoin futures open interest and basis, to evaluate how institutional demand is impacting BTC.

BlackRock’s IBIT cost basis is around $84,000, which, along with MicroStrategy’s cost basis of about $73,000, forms a “maximum pain” capitulation zone for Bitcoin. When prices approach these thresholds, market sentiment often shifts.

04 Institutionalization

BlackRock’s transformation reflects the irreversible trend of cryptocurrencies moving from the fringes to the mainstream. As institutional-grade infrastructure improves and client demand becomes more explicit, traditional financial giants are entering the space at unprecedented speed.

Fink and BlackRock COO Rob Goldstein jointly pointed out that tokenization is becoming a transformative force in global markets, with potential impact comparable to the early days of the internet.

They believe that recording asset ownership on digital ledgers can enhance efficiency, transparency, and accessibility, driving modernization of the financial system. The two executives wrote: “Since the invention of double-entry bookkeeping, ledgers have never been this exciting.”

Institutional inflows have become a major force driving the development of the crypto market. According to statistics, just last week, several Wall Street institutions saw net inflows exceeding $300 million.

Currently, $67,000 has become a new support level for Bitcoin, and technicals show $75,000 as the next target.

05 Future Outlook

Larry Fink’s transformation is not just a personal change of view, but a microcosm of the broader shift in traditional finance’s understanding of cryptocurrencies. This change signals that crypto assets will further integrate into the global financial system.

Fink now sees Bitcoin as “digital gold” and a store of value—a way to position Bitcoin within the traditional financial narrative, lowering the cognitive barrier for its inclusion in mainstream investment portfolios.

Meanwhile, BlackRock is actively expanding its footprint in the broader blockchain ecosystem. Reports indicate that BlackRock has participated in strategic investments in projects such as ASTER, with related ecosystem funds exceeding $50 million.

Under BlackRock’s influence, the barrier between traditional finance and the crypto world may further dissolve. Especially as the Federal Reserve sees influential board members open to crypto—one of whom could become the next chair—there may be positive shifts in the policy environment.

Future Outlook

Ethereum has also benefited, with prices showing resilience, hovering around $3,200, and 24-hour trading volumes on major platforms exceeding $20 billion.

Traders should watch ETH’s $2,800 support level; if it rebounds, it could signal upward momentum.

All of this points in a clear direction: When the CEO of BlackRock, which manages $11 trillion in assets, publicly admits he “got it wrong,” and Wall Street starts voting for crypto with billions in capital, the integration of the crypto world and traditional finance is no longer a future prospect—it’s a reality in progress.