Some investors buy cryptocurrency because they are terrified of a dollar collapse, and recently, BlackRock CEO Larry Fink remarked on this trend. During his remarks at the Future Investment Initiative in Riyadh, Fink described crypto as “assets of fear,” according to a Bloomberg report. But not every expert agrees with his interpretation of why people buy digital assets today.
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Financial experts argue that Fink is overlooking a much bigger structural shift that could fundamentally change how institutions approach cryptocurrency investments, permanently moving forward.
According to Daily Hodl, Fink stated that people own cryptocurrency because they are frightened about their financial security. He believes both crypto and gold serve similar roles as defensive hedges against uncertainty. Fink’s comments came as the U.S. government’s debt is projected to hit 143% of GDP.
His statement shows a dramatic shift from 2017, when he dismissed cryptocurrency entirely, per CNBC. 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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Josip Rupena, CEO of Milo, partially agrees with Fink’s assessment but emphasizes what he feels the BlackRock CEO’s remark overlooks.
“Fear of inflation and geopolitical risk drives some interest, especially in bitcoin,” Rupena said, but access through ETFs, custody solutions and compliance frameworks today are all equally important motives.
Rupena said that the newly established financial infrastructure has transformed cryptocurrency from a speculative edge case to a mainstream asset.
“Spot ETFs and EU rules like 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 than Fink’s fear-based framework suggests for modern investment portfolios.
“Many see bitcoin as a low-correlation portfolio diversifier, not just a hedge,” Rupena said. According to CNBC, gold and bitcoin ETFs have attracted significant inflows as investors seek diversification tools.
The comparison between gold and cryptocurrency reveals fundamental differences in volatility and investor composition worldwide. “Crypto is far more volatile,” Rupena said. Gold’s holders are central banks and macro funds, while crypto’s include retail, quant and tech investors.
“Gold tracks real yields; crypto reacts to liquidity, halving cycles and regulation,” Rupena said. State Street research shows gold provided greater than 4.7% average returns during equity drawdowns, while bitcoin fell 35.3%, establishing why gold serves as the primary left-tail hedge despite bitcoin’s lower long-term correlation.
“Experts will stay divided,” Rupena said about cryptocurrency’s ultimate investment purpose. However, regulatory clarity, yield-generating utility and institutional infrastructure will determine whether crypto functions as a defensive hedge or growth allocation ultimately. Bitcoin’s 0.15 correlation with equities and fixed supply already positions it as a scarce macro asset, while Ethereum’s staking yields favor infrastructure exposure. Bitcoin’s appeal lies in its detachment from traditional risk and return drivers.
“With better regulation, crypto becomes a small, risk-aware allocation, neither pure hedge nor hype,” Rupena said.
This article originally appeared on GOBankingRates.com: BlackRock CEO Calls Crypto an ‘Asset of Fear’ — Do Other Experts Agree?
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