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BlackRock CEO warns that Bitcoin could replace the dollar as the world's reserve currency, and cryptocurrency ETFs are seeing capital inflows
Blackstone Group CEO Larry Fink has warned that the U.S. dollar is at risk of losing its status as the world’s reserve currency and could be replaced by digital assets such as Bitcoin.
U.S. Treasuries could lead to the dollar’s global reserve status being replaced by Bitcoin (BTC) if investors begin to view digital currencies as safer assets, Blackstone Group CEO Larry Fink said in his annual letter to investors on Monday. Meanwhile, bitcoin exchange-traded funds (ETFs) saw inflows of $196 million last week, according to CoinShares’ weekly report, with altcoin products seeing their first inflows in four weeks.
In his annual letter to investors, Blackstone Group CEO Larry Fink expressed concern about the impact of rising U.S. national debt on the dollar’s global reserve status.
Fink stressed his strong support for digital assets, arguing that it is a remarkable innovation. However, he noted that if investors begin to view Bitcoin as a "safer option than the dollar," the digital asset could offset the United States' economic advantages.
He said the dollar has been the world's reserve currency for decades, but that status is not guaranteed to last forever.
“If the U.S. does not get its debt under control and if deficits continue to balloon, the country risks ceding that position to digital assets like Bitcoin,” Fink wrote.
Fink further discussed the importance of tokenizing real-world assets for investors. He said tokenization “makes investing more democratic,” and shared his hope that tokenized funds will become as familiar to investors as ETFs.
Meanwhile, global cryptocurrency ETFs saw net inflows of $226 million last week, according to CoinShares’ weekly report. Bitcoin saw the largest inflow, with a net inflow of $195 million. However, total assets under management of Bitcoin ETFs remain at their lowest level since the post-U.S. election rally - $114 billion.
Altcoin products saw net inflows of $33 million after four weeks of outflows. Altcoin ETFs with positive inflows included Ethereum, XRP, Solana, and SUI products, which recorded inflows of $14.5 million, $4.8 million, $7.8 million, and $4 million, respectively.
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