BlackRock CEO: Investors are choosing Bitcoin and gold as “fear assets” amid debt risks

• During a speech at the Future Investment Initiative, Larry Fink called Bitcoin and gold “fear assets” due to global debt.
• The BlackRock chief's statement comes as “depreciation trading” has become increasingly popular.
• He also warned that US reliance on foreign debt buyers was the biggest risk.

BlackRock CEO Larry Fink stated that investors are increasingly investing in precious metals and cryptocurrencies due to concerns about rising global government debt, according to a Bloomberg report.

Speaking at the Future Investment Initiative in Riyadh, he mentioned digital assets and gold:

“Owning cryptocurrency assets or gold are fear assets. […] You own these assets because you're afraid of your assets depreciating. You're worried about your financial security. You're worried about your physical security.”

He said demand for such instruments is growing due to the so-called “depreciation trade,” where investors are dumping government debt and currencies like the dollar, yen, and euro, and buying gold, silver, and cryptocurrencies instead.

Despite this, Fink noted that the US remains the primary destination for global investment for at least the next 18 months. However, he is concerned about the reliance on international buyers of US debt:

“We are still a country that needs 30-35% of all Treasury bond sales to go overseas, and that, in my view, is the biggest problem today.”

He warned that if foreign demand for US Treasuries declines, it will have serious consequences for the economy.

Goldman Sachs CEO David Solomon and JPMorgan CEO Jamie Dimon also spoke on the panel. Dimon noted growing deficits, while billionaire Bill Ackman (Pershing Square Holdings) noted that “asset growth is key,” adding that he “isn't worried about our solvency.”

Fink, in turn, emphasized that unlocking private capital could increase US economic growth to 3%.

He recently admitted that he has radically changed his view on crypto assets since 2017, when he called Bitcoin a “money laundering index.” He now ranks Bitcoin and gold equally, as they serve a similar function as alternative investments in times of instability.

As a reminder, BlackRock also raised $3 billion in digital assets for Q1 2025, confirming growing institutional interest in cryptocurrencies.

Source: cryptonews.net