Institutions are turning pro-crypto because of demand, not because they believe in it

“When BlackRock sneezes, the rest of the world catches a cold”

article-image

BlackRock CEO Larry Fink | Source: World Economic Forum (CC license)

share

When the average crypto skeptic changes their mind and dives down the rabbit hole, it’s hardly a newsworthy event. But it’s a different story when the CEO of the largest asset management company in the world performs an about-face.

Years ago, Larry Fink, the head honcho at BlackRock, panned bitcoin as an “index of money laundering.” Now, he touts the technology as digital gold and crypto as an international asset.

“Did Larry wake up one day and come to this epiphany?” Santiago Santos asks. 

“No, I think there’s a lot of institutional demand.”

The angel investor spoke to Blockworks on the Empire podcast (Spotify/Apple) about the reasoning behind the CEO’s attitude shift, and the impact of BlackRock’s moves in the space.

“I don’t think Larry took it upon himself to read the white paper, came to a massive realization and then started sending bitcoin to friends and said, ‘Wow, my God! This is phenomenal!’”

“They are constantly in touch with their largest clients and they see the window here,” Santos says.

When BlackRock sneezes…

Podcast host Jason Yanowitz says people don’t realize just how influential Larry Fink is, arguing he is possibly “the most powerful capital markets person in the entire world.”

“People underestimate that.” 

Fink is deeply politically connected, Yanowitz says. When the Federal Reserve “started printing [money] in 2020” and had to start buying corporate bonds to backstop the economy, he says, “Who did they turn to, to do it?”

“BlackRock and Larry Fink.” 

“When the FDIC came to wind down the portfolios of Signature and Silicon Valley Bank, who did they have do that?”

“BlackRock.”

Santos explains the influence that BlackRock exerts over the broader economy. “When BlackRock sneezes, the rest of the world catches a cold.”

“They have positions in pretty much every major company.”

Changing the narrative

BlackRock’s validation of crypto as an asset class is “probably the most important event in a couple years,” Santos says. It is the necessary “catalyst,” he says, to “change the narrative.”

It all comes down to institutional demand, Santos says. “I think they have a lot of interest from clients. That’s the only reason why they would do it.”

Santos says Fink is a “very practical man” who understands how he can expand his franchise.

“This is an emerging asset class,” he says. “You’re gonna wanna capture it with an ETF.”

Yanowitz says about half of the top mutual fund groups have “CEO-driven crypto strategies.”

On the other hand, “half of those don’t have crypto strategies,” he says. “Those big mutual fund groups are going to be forced into the market by their customers.”

“They all will respond,” Santos says, “not because they believe in the space, but because they want to capture an opportunity that their clients, if not offered, will go elsewhere for.”


Get the news in your inbox. Explore Blockworks newsletters:

  • Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
  • Empire: Start your morning with the top news and analysis to inform your day in crypto.
  • Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
  • 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
  • Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
  • The Drop: For crypto collectors and traders, covering apps, games, memes and more.
Tags

Upcoming Events

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates (5).png

Research

Outside of stablecoins, the value of tokenized assets sits below $20B, dominated by the following asset classes: private credit, US Treasuries, commodities, institutional alternative funds, stocks, non-US government debt, and corporate bonds. In the coming months, we see the greatest opportunities in the tokenization of illiquid markets, particularly private equity. However, the successful integration of offchain assets into blockchain ecosystems relies heavily on clear and consistent regulatory frameworks, with purpose-built infrastructure to support it.

article-image

Markets react to Fed Chair Jerome Powell’s comments at yesterday’s FOMC meeting

article-image

At DAS, the US president noted he’s called upon Congress to enact “simple, common-sense rules” for stablecoins and market structure

article-image

GDC shows us crypto game developers feel a bit down despite lavish parties and packed crypto side events

article-image

What a Pyth/Morpho/Re7 debacle says about decentralized accountability

article-image

At DAS, VanEck’s Matthew Sigel weighed in on a market that’s “90% flows and 10% fundamentals”

article-image

The first sitting president to address a crypto conference says the US is positioned to “dominate crypto and the next generation of financial technologies”