Larry Fink and Bitcoin: A sincere romance or a poker game?

Larry Fink is grabbing attention these days. Wondering why? Well, the big boss of the world’s largest asset manager keeps talking about Bitcoin, Bitcoin ETFs, and even cryptocurrencies. Enough to stir confusion among observers who once knew him as a notorious crypto-skeptic. But then, when did he switch sides? How did this turnaround come about? Questions that are tickling the minds of Bitcoin enthusiasts at the moment.

Larry Douglas Fink, a Neo-Converted Bitcoiner

In 2023, the CEO of BlackRock, apparently inspired by the possibility of introducing a Spot Bitcoin ETF, rolled out the red carpet for the praises of Bitcoin and cryptocurrencies. During an interview with CNBC in July of that same year, he stated that Bitcoin « [has] a differentiated value compared to other asset classes, but more importantly, because it is so international, it will transcend any currency ».

Three months later, crypto media echoed a new stance by the University of California, Los Angeles (UCLA) graduate regarding Bitcoin. He described it as a « safe haven ».

An amusing turnaround for someone who, for a long time, was labeled a crypto-skeptic, along with Warren Buffet and his cronies.

Interesting anecdote about how Larry Fink changed tune re bitcoin and broke away his fellow Wall St CEOs (which I was always curious about). Most big cos have a Robbie Mitchnick (or a few) but getting the ear and an open mind of the top person is a dif story. https://t.co/hPjmf9Hirx

— Eric Balchunas (@EricBalchunas) January 27, 2024

This comment by Eric Balchunas, senior ETF analyst at Bloomberg, supports statements by the famous crypto trader, The Wolf of All Streets, stating that:

« Larry Fink has become the world’s biggest Bitcoin advocate. Many believe his intentions are malicious. I asked Scaramucci if Fink had been legitimately ‘orange pilled’… and he shared a personal anecdote with Larry Fink that proves it is the case ».

Bitcoin, the Orange Pill at the Heart of the BlackRock Empire?

In a detailed analysis of the “Orange Pill”, our colleague brought up a scene from The Matrix (1999) where Morpheus offers Neo two pills. The first, blue, symbolizes the choice of the matrix, slavery, or the status quo, while the second, orange, allows one to « see an almost frightening reality ».

According to Mike Novogratz of Galaxy Digital, Larry Fink got “Orange Pilled” in 2023. In the pages of CoinDesk, he described this conversion as the « most important thing that happened this year in the Bitcoin domain ».

In October 2023, DL News clarified that it took time for Larry Fink to learn to love Bitcoin. In 2017, he told Bloomberg TV that he believed in the future of cryptocurrencies. However, the bear market at that time led him to associate BTC with « a money laundering index ». In 2018, Fink emphasized that BlackRock’s clients showed no interest in these digital assets, arguing a lack of legitimacy and transparency.

A year later, the arrival of Robbie Mitchnick, a former Ripple executive, at BlackRock as head of digital assets marked a turning point. Gradually, Larry Fink began to change his tone regarding Bitcoin and other cryptocurrencies.

We know the rest: on June 15, 2023, BlackRock filed an application for a Spot Bitcoin ETF with the SEC. Its approval took place on January 10, 2024. Larry Fink seems to have indeed embraced the orange revolution within his financial empire.