Predicted Institutional Allocation: 2-5% in global portfolios (Nasdaq, January 2025).
Larry Fink, the CEO of BlackRock, the largest asset manager in the world with assets under management (AUM) of 12 trillion, illustrated in a televised interview on 60 Minutes on October 12, 2025 (U.S. time) that he described Bitcoin as being good at diversification. The initial publication of the statement happened at 07:12 UTC on October 13 via X at the time of the segment on digital assets and portfolio strategy on a show by the Bitcoin historian Pete Rizzo.
This sell-off coincides directly with the $19 billion crypto sale that devastated exchanges such as Binance and Bybit with the tariff announcement. According to CoinGlass, Bitcoin dropped 5.5 percent to 68,000, and Ethereum had dropped 8 percent to 2,450. Analysts think that the selling of BlackRock was in line with the institutional hedging to reduce additional downside risk. S&P Global reports and CCN.com confirm that tensions in trade relations between the U.S. and China triggered volatility in the world market with the VIX index increasing by 18-25 overnight.
Fee-based investment manager BlackRock, with more than 10 trillion assets worldwide, had amassed Bitcoin via its IBIT ETF since January 2024. This is its most significant sale, however, since the sale was established, and this could be a sign that it will rebalance its portfolio. The industry observers identify three potential motives:
An analysis of blockchain outflows by Arkham Intelligence and Glassnode depicts respective IBIT wallets outflows within the reported period. They are anonymous destination addresses, but concentrated around known OTC settlement accounts. These movements are a controlled liquidation with no huge exchange deposits that will further crash the spot prices.
The iShares Bitcoin Trust at BlackRock (IBIT) recorded their highest net outflow of 890 million dollars within the last one week, while Grayscale and Fidelity each lost 1.2 billion dollars in their GBTC and FBTC respectively, according to ETF.com. The coordinated outflows point to a greater institutional drawback under macroeconomic turmoil. Recently, Larry Fink, the CEO of BlackRock, has cautioned that the world would soon face disruptive trade patterns, which would re-establish the inflation expectations, compelling the central banks to keep their policies tight, an ominous backdrop to risk assets.
After the liquidation storm and sell-off, Bitcoin is now trading around $68,000, a 45% drop in just three weeks, compared to November 27, 2021 when it was trading at time of sale at $124,000. According to the data of CoinMarketCap, the total crypto market cap in the world decreased by 350 billion dollars to 2.1 trillion, and the supply of stablecoins increased by 3% to 180 billion, which is an indication of a flight to safety. Other altcoins like ASTER and SOL were worse hit with their value plummeting by as much as 80 percent and 90 percent of their value as liquidity dried up.
