Bitcoin News Today: BlackRock Catalyzes Central Bank Shift to Gold and Bitcoin as BTC Surges 83.2% on ETF Inflows

BlackRock, the world’s largest asset manager, is catalyzing a global shift among central banks toward allocating reserves into gold and Bitcoin, signaling a response to de-dollarisation trends and macroeconomic volatility. The firm’s insights, coupled with its aggressive expansion into crypto and gold-backed ETFs, highlight a growing institutional appetite for alternative assets as hedges against systemic risks. Central banks, including those in China, India, and Russia, have increasingly prioritized gold purchases, while Bitcoin has emerged as a digital counterpart in this strategic reallocation [1].

The movement is underscored by record inflows into Bitcoin ETFs, with BlackRock’s iShares Bitcoin Trust (IBIT) amassing $76 billion in assets under management (AUM) in just 350 days—a pace outstripping the firm’s traditional ETF launches [4]. Concurrently, Bitcoin’s price surged to an intraday high of $123,091.61 in mid-2025, driven by institutional demand and corporate adoption. BlackRock’s CEO, Larry Fink, has publicly endorsed Bitcoin as a diversification tool, comparing its role to gold in the post-Bretton Woods era of currency realignment [3]. This mirrors historical patterns observed during the 2000s gold ETF boom, where institutional demand reshaped market dynamics [1].

Central banks’ gold reserves also saw a significant uptick, with 400 metric tons added in 2024 alone, reflecting a preference for tangible assets amid geopolitical and economic uncertainties [5]. BlackRock’s role in facilitating this transition is evident through its tokenization initiatives, which digitize real-world assets on public blockchains to enhance liquidity. The firm’s BUIDL fund, focused on blockchain innovation, has grown to $2.6 billion in AUM, underscoring institutional confidence in the sector [4].

Analysts note that BlackRock’s influence stems from its ability to bridge traditional and digital markets. By providing streamlined access to gold and Bitcoin via ETFs, the firm is enabling central banks and institutional investors to hedge against inflation and currency devaluation. This trend aligns with broader capital market reforms, as fintechs and corporations migrate operations onto blockchain infrastructure to reduce costs and improve transparency [6]. However, challenges remain, including regulatory scrutiny of crypto assets and the emergence of central bank digital currencies (CBDCs), which could reshape the landscape of global reserves [8].

BlackRock’s strategic pivot toward programmable finance—where assets are managed via smart contracts—positions it to address concerns about market fragmentation and investor protection. The firm’s emphasis on liquidity, scalability, and compliance mirrors its historical role in navigating market cycles. As central banks and institutions weigh their options, the convergence of physical and digital assets may redefine reserve management and investment strategies, with tokenized assets playing a pivotal role in this transformation [7].

Source: [1] [Gold and Bitcoin Shining in 2025 as ETFs Drive Diversification] (https://ph.investing.com/analysis/gold-and-bitcoin-shining-in-2025-as-etfs-drive-diversification-209643) [2] [Bitcoin Breaks $120K as Washington Embraces Crypto] (https://www.linkedin.com/pulse/bitcoin-breaks-120k-washington-embraces-crypto-m2-investment-whawf) [3] [Bitcoin Acts As A Hedge Against Local Fears And Could Rise $700,000 – BlackRock CEO] (https://www.bitcoininsider.org/article/280002/bitcoin-acts-hedge-against-local-fears-and-could-rise-700000-blackrock-ceo) [4] [The Great Onchain Migration - Pantera Capital] (https://www.pantera.com/research) [5] [Bitcoin News Today: Bitcoin Surges 83.2% Yearly Driven by Institutional Demand] (https://www.ainvest.com/news/bitcoin-news-today-bitcoin-surges-83-2-yearly-driven-institutional-demand-etf-inflows-2507/) [6] [Robinhood Launches Stock Tokens on Arbitrum] (https://www.robinhood.com/blog/stock-tokens) [7] [Pantera Capital on Tokenized Real-World Assets] (https://www.pantera.com/research/tokenization) [8] [BlackRock’s BUIDL Fund Growth] (https://www.blackrock.com/investing-ideas/2025/buidl-fund)