Still a big fan of digital assets, Blackrock CEO Larry Fink nevertheless said he is not blind to the possible risks of the United States from Bitcoin’s (BTC) increase to prominent.
“The United States has benefited from the dollar serving as the world’s reserve currency for decades,” Fink said in his annual letter to shareholders. But it is not guaranteed to last forever … If the United States does not get its debt under control, if deficit continues to balose, America risks losing this position to digital assets like Bitcoin. “
“I’m obviously not anti-digital assets,” Fink continued. “But two things can be true at the same time: Decentral funding is an extraordinary innovation. It makes markets faster, cheaper and more transparent. The same innovation could undermine America’s financial advantage if investors start to see Bitcoin as a safer betting than the dollar.”
Fink’s letter comes at a time of high market uncertainty and anxiety among investors about the economic state of the country in the midst of political changes in the place by US President Donald Trump. To balance the national deficit, Fink said, investors should diversify their portfolios to add private market market in addition to equities and bonds.
Fink, who doubles his commitment and belief in digital assets, said he believes that tokenized funds will be as well-known among investors, such as Exchange-Traded Funds (ETFS), provided the industry can create a better infrastructure for digital identities that Fink believes to be an obstacle in getting institutional investors from fully embracing decentralized financing.
“Each share, every bond, every fund – each asset – can be tokenized. If they are, it will revolutionize investments,” he wrote. “If we are serious about building an effective and accessible financial system, it will not be sufficient to advance tokenization. We must also solve digital verification.”
Blackrock became one of the issuers launching a spot of Bitcoin Etf in January 2024. Their product, Ishares Bitcoin Trust (Ibit), became the most successful ETF in the asset class. As of today, the fund handles almost $ 50 billion in assets where half of it comes from retail investors. Asset Manager has also issued a tokenized money market fund, Buidl, which is about to cross $ 2 billion in April assets, making it the largest tokenized fund currently on the market.
