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Bitcoin Surges in Institutional Standing as BlackRock Managing Director Declares: ‘More Upside Than Gold’
FNF News | May 27, 2025 | By Staff Reporter
In what could mark a watershed moment in the evolution of digital assets, a managing director at BlackRock, the world’s largest asset management firm, has publicly stated that Bitcoin now offers greater upside potential than gold, reflecting a broader shift within institutional finance.
The statement, made during a panel discussion hosted by Bloomberg Crypto Forum in New York, suggests that Wall Street’s most powerful players are no longer treating Bitcoin as speculative. Instead, it is increasingly seen as a legitimate, long-term macro asset that could rival — or surpass — traditional safe-haven investments.
“We’ve run our models. Bitcoin’s structure, scarcity, and cross-border liquidity make it a superior asymmetric bet over the next 5 to 10 years,” the executive said, requesting anonymity due to compliance rules.
BlackRock’s Growing Crypto Footprint
This sentiment isn’t new at BlackRock. The firm made headlines in 2024 when it successfully launched its iShares Bitcoin Trust (IBIT) after receiving SEC approval for a spot Bitcoin ETF. The ETF attracted over $15 billion in inflows within four months, making it one of the fastest-growing ETFs in U.S. history.
CEO Larry Fink, who once dismissed Bitcoin as “an index of money laundering,” has since become a vocal proponent. In a CNBC interview, Fink stated, “Bitcoin has the potential to revolutionize how we think about money.”
BlackRock’s 2025 Q1 earnings report confirms that Bitcoin and digital asset strategies now represent over $35 billion in assets under management (AUM) within their alternative investment division.
Institutional Pivot: The Bitcoin-Gold Flippening?
Traditionally, gold has been the benchmark for wealth preservation, with a market cap of over $13 trillion. However, Bitcoin’s market capitalization has now surpassed $1.6 trillion, according to CoinMarketCap, and it’s climbing.
Leading banks and funds are echoing the shift:
- Standard Chartered issued a revised forecast projecting Bitcoin to hit $200,000 by late 2025, citing institutional adoption and post-halving momentum.
- Goldman Sachs and Morgan Stanley expanded their crypto trading operations and issued internal guidance encouraging long-term exposure.
- Fidelity Digital Assets revealed that over 70% of institutional clients plan to increase their crypto allocations by the end of 2025.
“If gold was the hedge of the 20th century, Bitcoin is rapidly becoming the hedge of the 21st,” says Meltem Demirors, Chief Strategy Officer at CoinShares.
From Retail Mania to Institutional Strategy
While Bitcoin’s early years were marked by volatile price action and retail hype, 2025 is seeing a fundamental shift. Today’s momentum is driven by strategic positioning from:
- Pension funds, such as CalPERS and Canada’s CPP, which disclosed small Bitcoin allocations.
- Sovereign wealth funds, including Norway’s Government Pension Fund and Abu Dhabi Investment Authority, both of which have begun quiet exposure.
- Family offices and RIA networks, with over 600 U.S.-based advisors now offering Bitcoin ETFs to clients via mainstream custodians like Schwab and Fidelity.
Bitcoin vs. Gold: A Battle of Eras
Comparing the two assets:
| Feature | Gold | Bitcoin |
|---|---|---|
| Market Cap | $13 trillion | $1.6 trillion |
| Supply Limit | Unlimited mining | 21 million max |
| Portability | Low | Instant, global |
| Divisibility | Difficult | Highly divisible |
| Custody Complexity | Physical vaults | Cold storage |
Source: Fidelity Digital Assets Report, Q1 2025
Analysts at ARK Invest have suggested that Bitcoin could surpass gold in market cap within the next decade if just 10% of gold allocations shift to digital stores of value.
Macroeconomic Drivers Fueling Bitcoin’s Ascent
- Dollar Debasement: With ongoing inflation concerns and rising U.S. debt, institutions are turning to non-sovereign assets.
- Geopolitical Uncertainty: Conflicts in Ukraine, Taiwan, and the Middle East have spurred demand for borderless assets.
- Regulatory Clarity: The SEC and CFTC have clarified the legal status of Bitcoin, improving institutional confidence.
- Post-Halving Cycle: The 2024 Bitcoin halving cut mining rewards to 3.125 BTC, reducing new supply just as demand surges.
Not Without Risks
Skeptics caution that while institutional demand is strong, volatility remains a concern. Regulatory threats, particularly around custody and DeFi, could slow adoption. However, BlackRock’s analysis notes that Bitcoin’s volatility has decreased over time as liquidity and derivative markets mature.
Conclusion: Bitcoin’s Arrival is No Longer a Question
Bitcoin is no longer a contrarian bet. It is now a recognized institutional asset class, integrated into the strategies of the world’s most powerful financial firms.
“If you’re not looking at Bitcoin in 2025, you’re not managing money seriously,” said Dan Tapiero, CEO of 10T Holdings.
With statements like the one from BlackRock’s managing director, the message is clear: Bitcoin has arrived.
Verified Sources:
- Bloomberg: BlackRock Executive Says Bitcoin Offers More Upside Than Gold, May 2025
- CNBC: Larry Fink on Bitcoin, ETFs, and the Future of Digital Assets, March 2025
- CoinDesk: Bitcoin ETFs Dominate Q1 Flows, April 2025
- ARK Invest: Big Ideas 2025 Report
- Standard Chartered: Crypto Outlook Q2 2025
- CoinMarketCap: Bitcoin Market Cap Data, May 2025
- Fidelity Digital Assets: Institutional Investor Survey 2025