OREANDA-NEWS  The bitcoin exchange rate could soar to $700,000 if more and more global investment funds decide to invest 2-5% of their portfolios in cryptocurrency, BlackRock CEO Larry Fink said at a forum in Davos.

In 2024, BlackRock, the world's largest investment company in terms of assets under management, launched the iShares Bitcoin Trust and iShares Ethereum Trust exchange-traded funds, investing in bitcoin and ether, respectively.

Fink's opinion on cryptocurrencies has changed significantly recently. Previously, he was skeptical about digital assets, but now sees the potential for using them as investment tools.

"If you are worried about the depreciation of your currency or you fear for the economic or political stability in your country, you have an international tool called bitcoin that can help overcome these local concerns," Fink said.

"Earlier this week, I spoke with representatives of a sovereign wealth fund. We discussed, in particular, whether they should spend 2% of their portfolio or 5% of their portfolio on bitcoins. If everyone had such discussions, the price of bitcoin would jump to $500,000 or even up to $700,000," he added.

Fink stressed that he does not encourage everyone to invest in bitcoin, noting that cryptocurrencies are known for high volatility, and even during periods of growth, drawdowns of 20-30% are not uncommon.

Bitcoin is down 1.8% at Thursday's auction and is trading at $102,373.6, according to Coindesk.