Why Sovereign Wealth Funds Are Buying Bitcoin

BlackRock CEO Larry Fink shared at the New York Times DealBook Summit that several sovereign wealth funds bought Bitcoin during recent price drops. They added positions at $120,000, $100,000, and even in the $80,000s as BTC fell below $90,000. CoinDesk and Bitget News covered how Fink sees this as steady accumulation, not quick trades.

Building Positions for Years

These funds treat Bitcoin as a long-term asset to own over years, Fink said. “It’s not a trade, you own it for a purpose,” he explained. Funds like Abu Dhabi’s Mubadala Investment Company and Luxembourg’s sovereign wealth fund have disclosed stakes in spot Bitcoin ETFs, including BlackRock’s iShares Bitcoin Trust (IBIT). Yahoo Finance noted this shift shows confidence in Bitcoin’s staying power despite volatility.

Main Reasons Behind the Purchases

Fink laid out clear motivations for why these national investors are committing:

Protection from inflation and rising sovereign debt—Bitcoin serves as a hedge against currency debasement.
A “fear asset” during geopolitical tensions or financial stress, linked to worries over physical and financial security. Yahoo Finance
Response to government deficits that weaken traditional assets.
Strategic reserve, bought “with purpose” as part of broader portfolios. Benzinga quoted Fink on this directly.

BlackRock’s IBIT, launched in early 2024, has pulled in billions and become their top ETF performer. Fink, once skeptical of Bitcoin, now calls it a major use case. Forbes reported his take on funds buying incrementally from the $126,000 peak.