BlackRock (BLK) CEO Larry Fink writes in his latest annual letter that Bitcoin (BTC) could threaten the U.S. dollar’s status as the world’s reserve currency.
“The U.S. has benefited from the dollar serving as the world’s reserve currency for decades," wrote Fink in his annual letter to shareholders. “But that’s not guaranteed to last forever … If the U.S. doesn’t get its debt under control, if deficits keep ballooning, America risks losing that position to digital assets like Bitcoin.”
Fink’s 2025 letter comes at a time of high market uncertainty and anxiety among investors about the economic state of the U.S. and amid policy changes under U.S. President Donald Trump.
The CEO of BlackRock, the world’s largest investment firm with more than $10 trillion U.S. of assets under management, said investors should diversify their portfolios.
Specifically, he encouraged investors to add private market exposure to their portfolios in addition to stocks and bonds.
Looking ahead, Fink expects cryptocurrencies and other digital assets to continue rising in popularity.
He said that tokenized funds are likely to become as well-known as exchange-traded funds (ETFs), provided that the industry can create a better infrastructure for digital identities.
“Every stock, every bond, every fund— every asset—can be tokenized. If they are, it will revolutionize investing,” he wrote in the letter to shareholders.
BlackRock’s iShares Bitcoin Trust (IBIT) is the most successful ETF in the history of the asset class with nearly $50 billion U.S. of assets, about half of which has come from retail investors.
The stock of BlackRock has risen 15% over the last 12 months to trade at $946.48 U.S. per share.
