BlackRock, the world’s largest asset manager, released its AI report with a bearish outlook on U.S. bonds and the country’s economy. BlackRock presented a bullish projection for crypto adoption, signaling that the growing US national debt may accelerate how quickly more institutions begin adopting and utilizing crypto products. In 2025, institutional interest in cryptocurrency, especially Bitcoin, grew to record levels, sending BTC and other assets to ATH levels. While those surges have since been reversed, BlackRock insists that the trend may reverse next year as US debt increases.
According to BlackRock, the US national debt is set to breach $38 trillion, making the market far more fragile. Hence, the asset manager suggests traditional financial hedges are failing, prompting a shift towards digital assets like Bitcoin as alternative investments. More government borrowing “… creates vulnerabilities to shocks such as bond yield spikes tied to fiscal concerns or policy tensions between managing inflation and debt servicing costs,” the report said.
BlackRock Continues to Uplift BTC, Crypto
BlackRock is one of the largest institutional investors in Bitcoin, with its iShares Spot BTC ETF being one of the most successful as well. The company is already planning its next offering, a staked Spot Ethereum ETF, and has spoken highly of crypto for years. CEO Larry Fink even recently declared that the technology is just beginning to transform the global economy. The world’s largest asset manager has actually positioned asset tokenization at the center of its future strategy, with Fink stating that tokenizing everything from real estate to equities and even bonds will be the next major wave of opportunity in finance.
Furthermore, another digital asset that BlackRock has shed light on is stablecoins, which have exploded this year. Digital assets whose value is pegged to a real-world asset like the dollar or gold “are no longer niche, they’re becoming the bridge between traditional finance and digital liquidity,” said Samara Cohen, BlackRock’s global head of market development, in the report.
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Per BlackRock, the institutional flood of money into crypto, highlighted by BlackRock’s $100 billion in bitcoin ETF allocations, promises to take digital assets to all-time highs next year. Several analysts forecast Bitcoin will climb to more than $200,000, and other assets like SOL and XRP could hit new highs as well.