BlackRock CEO Says Crypto Washout Ends as Bitcoin ETF Outflows Halt

BlackRock CEO Larry Fink told CNBC on July 15 that the leverage-driven selloff in digital assets has run its course, arguing that Bitcoin now exhibits "more stability at these levels." The comments came days after BlackRock reported record second-quarter results, pushing total assets under management to $15.34 trillion. Fink offered no specific price target for Bitcoin.

Fink attributed the roughly $2 trillion market wipeout this year to an excess of leveraged participants. "I was always worried about the leverage in Bitcoin and crypto. There was too much leveraged players in it. That's why we had to wash out," he said. While answering a question about leverage risk in South Korea's stock market, Fink noted that global markets carry far less leverage today than in 2008 and 2009, making crypto the notable exception until this recent flush.

Recent US spot Bitcoin ETF flow data provides tangible backing for his stability thesis. After suffering $4.5 billion in net outflows in June as Bitcoin fell more than 20%, the funds have found their footing. A brutal 10-session streak that drained roughly $2.7 billion ended on July 2 with a $221.7 million inflow. Since July 6, Glassnode data indicates a consistent run of daily inflows ranging from $80 million to $260 million.

This return of capital has coincided with Bitcoin climbing from under $58,000 to nearly $65,000 by July 15. BlackRock's own iShares Bitcoin Trust (IBIT) reflects this equilibrium. IBIT holdings have flattened around 730,000 BTC after shedding roughly 90,000 coins from a mid-May peak near 823,000 BTC. This stabilization in holdings arrived even as overall ETF trading volumes collapsed to cycle lows just days earlier.

Fink's "very bullish" 12-month outlook extends well beyond crypto to encompass broader markets. He attributed this optimism to a technological revolution in corporate margins. Looking forward, he predicted the emergence of a futures market for computing power, labeling the financing of artificial intelligence infrastructure as "the next revolution in finance."

For institutional investors, Fink's public assessment of Bitcoin carries distinct commercial implications. BlackRock currently provides formal allocation guidance of 1% to 2% of portfolios for institutions seeking Bitcoin exposure. A stabilizing Bitcoin price directly benefits the firm's iShares business unit, which houses IBIT and served as a primary driver of BlackRock's record quarterly asset growth.