BlackRock CEO: (Investor) own bitcoin to hedge against currency debasement - BitcoinMagazine

BlackRock CEO: (Investor) own bitcoin to hedge against currency debasement - BitcoinMagazine

BlackRock CEO Larry Fink has called on investors to consider owning Bitcoin as a hedge against currency debasement. This advice comes amidst a backdrop of growing institutional adoption and regulatory shifts that are transforming Bitcoin's role in the financial landscape.

According to the latest data, Bitcoin has transitioned from a speculative asset to a core institutional reserve, with Bitcoin Treasury Companies (BTC-TCs) allocating capital to hedge against fiat devaluation and generate alpha [1]. Firms like MicroStrategy and Semler Scientific are leading this adoption, leveraging debt and equity to scale Bitcoin per share (BPS). Regulatory shifts, including President Trump's Strategic Bitcoin Reserve and the BITCOIN Act, have legitimized Bitcoin as a permanent reserve asset, reducing legal uncertainty [1].

The U.S. Strategic Bitcoin Reserve and global regulatory clarity are accelerating the shift towards Bitcoin as a core component of institutional portfolios. By July 2025, over 131,000 BTC had been added to public company balance sheets, with firms like MicroStrategy and Semler Scientific leading the charge [1]. This trend is not just confined to the U.S.; globally, regulatory arbitrage is reshaping the playing field, with jurisdictions like Singapore, Hong Kong, and the UAE emerging as crypto-friendly hubs [1].

Market dynamics indicate that Bitcoin's influence on traditional markets is no longer theoretical. On-chain data reveals a 47% year-over-year increase in network hashrate, signaling robust miner activity and security. Over 92% of Bitcoin holdings are in profit, with 74% of the supply considered illiquid [1]. This hoarding behavior reinforces scarcity-driven price appreciation, while the MVRV ratio of 2.3× indicates long-term holders are up 230% on their cost basis [1].

The rise of BTC-TCs has also become a significant factor in Bitcoin price movements. While their average daily impact on Bitcoin is 0.59%, major acquisitions by firms like MicroStrategy can drive price swings of over 9% [1]. This dynamic is amplified by strategic order types and capital-raising mechanisms that allow BTC-TCs to scale holdings without excessive slippage [1].

For investors, the BTC-TC model offers asymmetric risk-reward profiles. Firms that execute disciplined capital structures—leveraging low-cost debt and equity—can generate outsized BPS growth. However, the sector is not without risks. High debt loads and NAV premiums require careful due diligence [1]. Key opportunities include direct BTC-TC exposure, Bitcoin ETFs, and arbitrage and volatility plays [1].

In the context of Ethereum, US spot ETH ETFs saw $287.6 million in net inflows, ending a four-day outflow streak led by BlackRock’s ETHA and Fidelity’s FETH [2]. This rebound follows a sustained outflow period of more than $924 million between August 15 and August 20 [2]. The cumulative net inflows for Ethereum ETFs now exceed $12 billion, reflecting renewed institutional and retail investor interest [2]. As of Thursday, spot ETH ETFs held 6.42 million ETH, valued at approximately $27.66 billion, representing nearly 5.31% of the total circulating supply [2].

The growing concentration of ETH in ETFs and corporate treasuries is shifting the dynamics of supply and demand, making the market more susceptible to price volatility from large trades or rebalancing events [2]. Analysts suggest this trend may indicate a structural shift in how Ethereum is being perceived and utilized by institutional investors [2].

In conclusion, the rise of BTC-TCs and the growing institutional adoption of Bitcoin and Ethereum ETFs are transforming the financial landscape. As central banks grapple with inflation and currency debasement, Bitcoin's fixed supply and macroeconomic sensitivity position it as a superior store of value. For investors, the long-term trajectory is clear: Bitcoin is no longer a fringe asset but a core component of the modern treasury strategy.

References:
[1] https://www.ainvest.com/news/bitcoin-treasuries-era-institutional-alpha-treasury-reallocation-2508-45/
[2] https://www.ainvest.com/news/ethereum-news-today-blackrock-drives-ethereum-etf-comeback-shifting-market-power-institutions-2508/