Although his opinions on Bitcoin has changed over time, he still warned that BTC is an ‘asset of fear’ prone to volatility. At the same time, Gary Gensler recently repeated his long-standing warning that most cryptocurrencies lack real fundamentals, and pointed out that Bitcoin stands apart from thousands of speculative tokens. Larry Fink Admits a Major Shift on Bitcoin BlackRock chair and CEO Larry Fink used his appearance at The New York Times’ DealBook Summit to point out just how dramatically his stance on Bitcoin changed over the past decade. Speaking alongside Coinbase CEO Brian Armstrong, Fink acknowledged that his shift from dismissing crypto as a tool for illicit finance to overseeing the largest spot Bitcoin ETF in the United States is one of the most public changes of opinion he has ever made. He recalled that in 2017, before Bitcoin’s explosive bull run, he openly linked the asset to money laundering, which actually defined much of Wall Street’s thinking at the time. Today, BlackRock’s iShares Bitcoin Trust (IBIT) commands tens of billions in assets and quickly became a central pillar of institutional Bitcoin exposure. Fink told interviewer Andrew Ross Sorkin that his thinking is still changing as the market matures, but he pushed back against the notion that he is now fully aligned with Bitcoin’s most enthusiastic supporters. He described Bitcoin as “an asset of fear,” and pointed out that its price often slipped when global tensions appeared to ease, like during signals of progress in US–China trade relations or the possibility of de-escalation in the war in Ukraine. According to Fink, anyone treating Bitcoin like a short-term trade should expect extreme volatility and be prepared for the challenges of market timing, which he believes most investors are not equipped to do. Despite this, BlackRock’s actions show a deepening commitment to regulated crypto products. The firm secured SEC approval in January of 2024 to launch IBIT, one of the first spot Bitcoin ETFs in the US. The fund quickly grew to a peak valuation of around $70 billion, which helped cement BlackRock at the center of the institutional Bitcoin landscape. However, November brought a period of huge net outflows, with IBIT shedding more than $2.3 billion over the month, including two single-day withdrawals of more than $450 million each. Even so, BlackRock is still confident in the long-term role of ETFs. Business development director Cristiano Castro described them as “liquid and powerful instruments.” Gensler Warns Most Crypto Still Lacks Fundamentals Former US Securities and Exchange Commission Chair Gary Gensler also recently shared his thoughts about Bitcoin and crypto, and warned in a new Bloomberg interview that most digital assets are still “highly speculative” and lack the fundamentals investors should expect. While he acknowledged that Bitcoin sits closer to a commodity, he argued that the broader universe of tokens does not offer dividends, cash flows or traditional forms of value, leaving retail investors exposed to serious risks. Gensler explained that public enthusiasm does not replace underlying economic substance, and urged market participants to question what stands behind the thousands of tokens circulating today. His comments were made against the backdrop of a regulatory legacy that reshaped the industry. During his time leading the SEC from 2021 to early 2025, Gensler oversaw a sweeping enforcement campaign that targeted exchanges, token issuers and staking programs. Gary Gensler Some of the more high-profile actions included lawsuits against Coinbase for allegedly acting as an unregistered exchange, broker and clearing agency, as well as the move that forced Kraken to shut down its US staking program and pay a multimillion-dollar penalty. This all cemented his reputation as one of the most aggressive crypto regulators in SEC history, which drew a lot of criticism from people in the industry who accused him of stifling innovation and regulation-by-enforcement. Pressed on whether crypto has become a partisan issue, especially with references to the Trump family’s recent crypto activity, Gensler rejected the idea. He said the debate is grounded in investor protection, fairness and equal access to information—principles he believes should apply universally regardless of political alignment. In his view, the regulatory conversation is not about party lines but about ensuring that the same transparency and protections enjoyed in traditional markets extend to crypto assets. Gensler also commented on the growing role of ETFs in the economy. He argued that finance naturally gravitates toward centralization, so the shift from decentralized ideals to more integrated and centralized products like Bitcoin ETFs is not surprising. During his tenure, the SEC approved the first US Bitcoin futures ETFs, which he framed as part of a broader integration of crypto with traditional financial infrastructure. Even after leaving office, Gensler’s perspective still shapes regulatory thinking. He consistently places Bitcoin in a separate category while still sharing doubts about altcoins, and his comments will even now influence court battles, compliance strategies and institutional allocation frameworks.
