Key Takeaways
- Larry Fink warns the U.S. dollar could lose reserve status to Bitcoin.
- BlackRock's IBIT Bitcoin ETF reached $50B AUM, dominating the market.
- Fink says tokenization can revolutionize markets by eliminating delays and broadening access.
BlackRock CEO Larry Fink warned that the U.S. dollar’s global reserve currency status is not guaranteed and could be overtaken by digital assets like Bitcoin if federal debt continues to spiral.
Rising federal debt
In his annual letter to investors, Fink highlighted that U.S. debt has grown at three times the rate of GDP since 1989.
Interest payments are projected to exceed $952 billion this year — surpassing defense spending — and by 2030, all federal revenue could be consumed by mandatory spending and debt service.
Perspective on digital assets
Fink wrote:
I’m obviously not anti-digital assets. But… decentralized finance could undermine America’s economic advantage if investors begin seeing bitcoin as a safer bet than the dollar.
BlackRock’s Bitcoin exposure
BlackRock’s own exposure to Bitcoin has grown significantly.
Its U.S. spot Bitcoin ETF, IBIT, has become the largest ETF launch in history, amassing over $50 billion in assets under management.
The fund saw $37.4 billion in net inflows in 2024 and more than $40 billion total — far outpacing Fidelity’s FBTC, which has $11.5 billion in inflows.
The future of tokenization
Fink also underscored the transformative potential of tokenization, calling it the future of investing.
He said:
Every stock, every bond, every fund — every asset — can be tokenized.
He suggested that blockchain technology could eliminate settlement delays and unlock billions in stagnant capital.
Retail investor demand
More than half of IBIT’s demand has come from retail investors, and 75% of them are first-time iShares customers.
BlackRock has since expanded its Bitcoin offerings to Canada and Europe.
