How Larry Fink and BlackRock Transformed Crypto Into Institutional Asset

The most profound shift in cryptocurrency adoption didn’t come from blockchain evangelists—it came from Wall Street’s most powerful voices. When Larry Fink’s BlackRock, the world’s largest asset manager, stepped into the bitcoin ETF space, the crypto industry crossed an invisible but unmistakable line. What many had dismissed as speculation suddenly appeared legitimate to institutions that manage trillions in capital.

In 2023, BlackRock filed for approval to launch a bitcoin exchange-traded fund, a move that sparked immediate ripples through financial markets. The following year, U.S. regulators granted approval, and by January 2024, the institutional floodgates opened. Over $30 billion poured into spot bitcoin ETFs within weeks—not from retail traders chasing memes, but from hedge funds, pension plans, university endowments, and other institutional powerhouses wielding serious capital.

When BlackRock Entered, Institutions Followed

The timing proved pivotal. Bitcoin entered 2024 trading near $44,000. Within days of ETF approval, the price surged to $68,210 as of late February 2026. By the end of 2024, Bitcoin had shattered previous records, climbing above $100,000 for the first time in history. This wasn’t accidental—it was the market reacting to a watershed moment: the Pope of Finance had blessed cryptocurrency.

Nearly 2,000 institutional holders now hold positions in spot bitcoin ETFs. Marc Rowan’s Apollo Global Management, Izzy Englander’s Elliott Management, pension funds, university endowments, and even city governments that typically avoid risk have deployed hundreds of millions into these vehicles. It wasn’t because they suddenly became crypto “degens”—it was because Larry Fink and BlackRock had provided what might be the single most credible stamp of approval in modern finance.

Ethereum followed a parallel trajectory. Since BlackRock’s iShares began offering the Ethereum ETF alongside its bitcoin product, institutional interest in ETH has grown substantially. Ethereum now trades around $2,050, reflecting similar institutional adoption patterns. The broader crypto market capitalization has swelled from approximately $1 trillion when BlackRock first filed its bitcoin ETF application to nearly $3.6 trillion, though specific tokens like Dogecoin now command market caps ($17.06 billion) exceeding legacy companies like Ford.

Fink’s Formula: Being Right Matters More Than Being First

Larry Fink’s greatest strength isn’t speed—it’s patience. This philosophy shapes BlackRock’s entire approach to emerging markets and technologies. According to Fink, what separates exceptional companies from mediocre ones isn’t who arrives first, but rather who possesses the vision and flexibility to reinvent themselves within changing ecosystems.

BlackRock didn’t invent ETFs. That innovation came in 1993 from others. But the firm’s dominance in the space developed over the following 15 years, accelerated when BlackRock acquired iShares. The company applies this exact strategy to crypto: not rushing in, but entering decisively once conditions align.

For years, many believed Fink opposed cryptocurrency. The narrative was inaccurate. In 2017, the BlackRock CEO stated publicly he was “a big believer in the potential of what a cryptocurrency can do”—but he questioned its practical use cases beyond speculation. By 2020, Fink suggested the asset class could eventually evolve into a global market asset. The real move came in 2022 when BlackRock began permitting certain clients to trade crypto directly. This methodical progression demonstrates Fink’s philosophy in action: observe, analyze, then execute.

“The optics of having one of the most influential figures in global finance champion crypto ETFs was a clear turning point,” said Nate Geraci, an ETF specialist tracking the sector’s evolution. “The BlackRock seal of approval carries immense institutional weight. Not only did Larry Fink endorse spot bitcoin and ether ETFs, but he also championed the underlying assets publicly, enhancing their legitimacy in ways that transcend traditional marketing.”

From ETFs to Tokenization: BlackRock’s Evolving Crypto Strategy

BlackRock’s commitment extends far beyond spot trading. The company is actively reshaping how financial infrastructure itself operates through real-world asset (RWA) tokenization—essentially moving traditional financial instruments onto blockchain networks.

In March 2024, BlackRock partnered with crypto-native firm Securitize to launch the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), issued on the Ethereum blockchain. Again, BlackRock wasn’t the pioneer. Franklin Templeton had launched its OnChain U.S. Government Money Fund (FOBXX) several years earlier. Yet within six weeks of BUIDL’s launch, BlackRock’s tokenized fund had become the largest in the category at $375 million. Today, BUIDL stands at $530 million and maintains its position as the leading tokenized Treasury fund globally, ahead of competitors from Hashnote, Ondo, and Franklin Templeton itself.

This rapid dominance transformed the entire tokenized Treasury market. Assets under management in this segment exploded past $2 billion, creating an efficient marketplace for investors seeking to capitalize on elevated Treasury yields. “BlackRock’s support for tokenization signals that the technology will reshape capital markets,” said Carlos Domingo, co-founder and CEO of Securitize. “The firm’s commitment to this ecosystem validates what we believe will be a fundamental transformation in how institutional capital operates.”

The Cascading Effect on Traditional Finance

What Larry Fink achieved—whether intentionally or through sheer gravitational pull—was the destigmatization of cryptocurrency within institutional circles. The post-FTX bear market that nearly destroyed the industry’s credibility has given way to a new narrative: crypto is a legitimate asset class worthy of serious capital allocation.

Pension funds that would have faced governance questions investing in risky digital assets now cite BlackRock’s institutional-grade bitcoin and ether ETFs as justification for multi-hundred-million-dollar allocations. University endowments, fortress institutions of conservative investing, have reported substantial cryptocurrency holdings through these same vehicles. This isn’t speculation—it’s institutional capital flows following institutional credibility.

The ripple effect extends beyond prices. The narrative shift itself became the asset. When institutions move, others follow. When Larry Fink validates a technology, skeptics reconsider. The crypto industry didn’t need first movers—it needed validators with credibility. And no figure in traditional finance carries more weight than BlackRock’s CEO.

The numbers bear this out. Bitcoin’s journey from $44,000 at year-start 2024 to beyond $100,000 by year-end, with ethereum and the broader crypto market following similar trajectories, reflects this institutional validation. Even meme assets like Dogecoin have expanded their market presence, with DOGE now commanding a market cap that dwarfs classic consumer brands.

The Takeaway

Larry Fink’s greatest contribution to cryptocurrency wasn’t invention—it was timing. He identified the moment when the infrastructure had matured, the use cases had evolved, and the technology had stabilized enough for institutional capital to enter safely. In doing so, BlackRock became the bridge between Wall Street and the blockchain economy.

This wasn’t about being first. It was about being credible when crypto needed it most. And in finance, when Larry Fink backs something, the entire industry takes notice.