Key Highlights
- Sovereign wealth funds bought more Bitcoin during its price drop, according to BlackRock CEO.
- Big state investors added to their Bitcoin holdings as prices fell, using the dip to strengthen long-term confidence in the asset.
- Sovereign funds used Bitcoin’s price drop to buy more, signaling that major investors are holding it for long-term value.
BlackRock CEO Larry Fink said that sovereign wealth funds are focusing more on buying Bitcoin during its recent price drop. Speaking at the New York Times DealBook Summit in New York on Wednesday, Fink said that long-term investors continue to buy Bitcoin, even when the price drops.
“We’re seeing more and more legitimate, long-holding investors investing in it,” Fink said. “I can tell you there are a number of sovereign funds […] they are adding incrementally at $120,000, $100,000; I know they bought more in the $80s.”
Big investors using dip as an opportunity
State-backed investors buying Bitcoin is not completely new. Abu Dhabi’s Mubadala Investment Company and Luxembourg’s sovereign wealth fund have previously shared that they hold Bitcoin in spot ETFs.
However, Fink pointed out that the recent purchases during the drop below $90,000 are notable. He explained that these funds are building longer-term positions rather than trying to make quick profits.
“They’re establishing a longer position and then you own it over years … It’s not a trade, you own it for a purpose,” he said.
Institutional confidence continues to grow
Fink’s comments show that big investors are thinking about Bitcoin differently. Even though Bitcoin remains volatile, sovereign wealth funds are still putting money into it. BlackRock, the world’s biggest asset manager, has itself increased its involvement in the market.
Under Fink’s leadership, the firm launched the iShares Bitcoin Trust (IBIT), which has attracted billions in assets since early 2024. The ETF has become the company’s most profitable exchange-traded fund.
At the event, Fink also spoke about Bitcoin’s role as a hedge against economic pressures. “I believe there is a big, large use case for it,” he said, noting that Bitcoin can help protect against inflation and growing government debt. He said it is not just for quick profits or speculation. Instead, it can be a way to save money and protect value over time.
The recent Bitcoin purchases by sovereign wealth funds and big firms like BlackRock at a time when the market is witnessing a massive pull-down show that investors are taking digital assets seriously and they view their investment for the long term. If more of these purchases continue, it could make Bitcoin stable over time and encourage other large investors to join.
