Sovereign Wealth Funds Quietly Accumulate Bitcoin as Prices Dip: BlackRock’s Fink Confirms Growing Institutional Demand

BlackRock CEO Larry Fink says sovereign wealth funds have been “buying the dip” in bitcoin, underscoring a notable rise in long-term institutional confidence even as the cryptocurrency experienced sharp price swings. Speaking at the New York Times DealBook Summit, Fink revealed that several sovereign wealth funds added to their bitcoin positions as the price dropped to $120,000, $100,000, and even into the $80,000 range. According to Fink, these state-backed investors are not seeking short-term gains — they are building strategic positions designed to be held for years.

While sovereign wealth fund interest in bitcoin is not entirely new — with entities like Abu Dhabi’s Mubadala Investment Company and Luxembourg’s national fund previously disclosing exposure through spot bitcoin ETFs — their willingness to accumulate during recent price declines signals a deeper shift in sentiment. Fink emphasized that these investments reflect a “purpose-driven” approach, aligning bitcoin with long-term hedging strategies rather than speculation.

The comments highlight how institutional adoption of bitcoin continues to evolve, especially among large global investors managing national reserves. Despite ongoing volatility, bitcoin’s appeal as a hedge against inflation, rising government debt, and currency debasement appears to be strengthening. Fink, once a vocal critic of the asset, has become one of its strongest advocates as demand accelerates.

Under his leadership, BlackRock launched the iShares Bitcoin Trust (IBIT), which quickly grew into one of the firm’s most profitable ETFs, attracting billions in inflows since early 2024. The success of IBIT and the increasing involvement of sovereign funds reinforce bitcoin’s expanding role within institutional portfolios.

Fink reiterated his belief that bitcoin holds a significant use case in today’s macroeconomic environment, framing it as a resilient store of value for long-term investors. As sovereign wealth funds continue to accumulate, their participation signals rising global confidence in bitcoin’s future and its potential to act as a safeguard against economic uncertainty.