BlackRock CEO Larry Fink recently revealed that some sovereign wealth funds have been quietly buying Bitcoin during the sharp correction in the cryptocurrency market. This information was reported by PANews citing Forbes on December 4, showing that the flow of national-scale institutional money is still pouring into the market despite the strong fluctuations in BTC prices recently.
Chia to Fink, many sovereign wealth funds initially chose to sit on the sidelines when Bitcoin hit its historic peak of around $126,000. However, when the price began to fall sharply to the $80,000 region, they switched to a buying strategy that followed each decline, gradually accumulating with the goal of holding for the long term instead of trading for the short term. This “price layer” buying model is similar to the strategy that many hedge funds and large financial institutions have adopted throughout the recent growth cycle of the crypto market.
Fink said the strong participation of sovereign wealth funds is a sign of growing confidence of governments in Bitcoin as a strategic reserve asset. Some countries are even expanding their digital investment strategies to avoid being left behind in the new financial wave.
The BlackRock CEO also warned that the US risks falling behind if it does not accelerate investment in areas such as asset digitization, blockchain and tokenization. This comment is especially notable in the context of President Donald Trump – who won the election in late 2024 – repeatedly expressing a more open view on the crypto industry, urging the US government to XEM reducing regulatory pressure and encouraging innovation.
Fink also stressed that tokenization will see a “huge boom” in the coming years, as more traditional assets — from bonds to stocks to real estate — are digitized and traded on blockchains. Analysts XEM this as a key trend in global financial markets in the next decade, increasing transparency, reducing settlement risks and expanding access to assets for global investors.
