Some investors buy cryptocurrencies because they fear the collapse of the dollar, and recently, BlackRock CEO Larry Fink commented on this trend. During his remarks at the Future Investment Initiative in Riyadh, Fink described crypto as a “fear asset,” Bloomberg reports. But not every expert agrees with his explanation of why people buy digital assets today.
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Financial experts argue that Fink is ignoring a much larger structural shift that could fundamentally alter the way institutions approach cryptocurrency investing permanently going forward.
What did Fink actually say about crypto?
According to Daily Hodl, Fink said that people are owning cryptocurrencies because they are afraid for their financial security. He believes that both crypto and gold play the same role as a defensive hedge against uncertainty. Fink’s comments come as US government debt is estimated to reach 143% of GDP.
According to CNBC, his statement marks a dramatic change from 2017, when he dismissed cryptocurrencies entirely. Currently, BlackRock manages $82.4 billion through its iShares Bitcoin Trust as of November 7, 2025, according to official iShares data.
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What matters more to investors than fear?
Milo CEO Josip Rupena partially agrees with Fink’s assessment but emphasizes what he sees as being overlooked in the BlackRock CEO’s comments.
“Fears of inflation and geopolitical risk drive some people’s interest, especially in Bitcoin,” Rupena said, “but access through ETFs, custody solutions and compliance frameworks are all equally important objectives today.”
Rupena said the newly established financial infrastructure has transformed cryptocurrencies from a speculative edge case to a mainstream asset.
“EU regulations like spot ETFs and MICA make it more legitimate,” he said. According to the European Securities and Markets Authority, MiCA creates uniform EU market rules for crypto-assets.
Furthermore, many financial professionals view Bitcoin differently from Fink’s fear-based framework for modern investment portfolios.
“Many view Bitcoin not just as a hedge, but as a low-correlation portfolio diversifier,” Rupena said. According to CNBC, gold and Bitcoin ETFs have attracted significant inflows as investors seek diversification tools.
Why do gold and crypto operate differently?
A comparison between gold and cryptocurrencies reveals fundamental differences in volatility and investor structure around the world. “Crypto is much more volatile,” Rupena said. Holders of gold are central banks and macro funds, while crypto includes retail, quant and tech investors.
“Gold tracks real yields; crypto reacts to liquidity, half-cycles and regulation,” Rupena said. State Street Research shows that gold provided an average return of more than 4.7% during equity declines, while Bitcoin fell 35.3%, establishing why gold serves as the primary left-tail hedge despite its low long-term correlation to Bitcoin.
What determines the investment objective of crypto?
“Experts remain divided,” Rupena said about the ultimate investment objective of cryptocurrencies. However, regulatory clarity, yield generating utility, and institutional infrastructure will determine whether crypto ultimately serves as a defensive hedge or growth allocation. Bitcoin’s 0.15 correlation with equities and fixed supply already positions it as a rare macro asset, while Ethereum’s stake helps infrastructure performance. Bitcoin’s appeal lies in its separation from traditional risk and return drivers.
“With better regulation, crypto becomes a small, risk-aware allocation, neither a pure hedge nor a promotion,” Rupena said.
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This article originally appeared on GOBankingRates.com: BlackRock CEO calls crypto a ‘fear asset’ – do other experts agree?
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