Larry Fink, CEO of BlackRock, the world’s largest asset manager with US$9 trillion in assets under management, said in an interview with Fox Business on July 5, 2023, he believes that “crypto is digitizing gold” and that BlackRock’s Bitcoin ETF could help make the sector “more democratized.”
This comes in stark contrast to his speech at the 2018 New York Times Dealbook Conference, where Fink sounded a warning bell about the cryptocurrency industry, expressing his caution about its lack of legitimacy and the absence of government-backed regulation, emphasizing that such support would be necessary for BlackRock to become involved.
“Bitcoin is not based on any one currency, and so it can represent an asset that people can play as an alternative. It’s digitalizing gold in many ways. Instead of investing in gold as a hedge against the onerous problems of any one country or the devaluation of your currency of whatever country you’re in, Bitcoin is an international asset.”
Background
In June, the company filed plans with the U.S. Securities and Exchange Commission (SEC) for a spot Bitcoin ETF, which triggered an influx of other applications, such as that of rival Fidelity, which has $4.3 trillion in assets under management.
BlackRock’s ETF would provide investors with exposure to one of the fastest-growing digital assets and open up a new avenue for Bitcoin adoption. It’s a major milestone for the cryptocurrency industry, and it’s sure to create waves in the global investment landscape.
“It costs a lot of money right now to transact Bitcoin,” Fink said Wednesday. “We hope our regulators look at these filings as a way to democratize crypto.”
Fink’s comments come at a time when the crypto sector is facing increasing scrutiny from regulators. In recent past, the SEC has rejected several applications for Bitcoin ETFs, citing concerns about market manipulation and investor protection.
And despite BlackRock’s near-perfect record when it comes to having ETFs approved by the U.S. Securities and Exchange Commission, the agency has yet to accept an application for a spot Bitcoin ETF. Last week, their application faced a set back when the SEC reportedly labelled it “inadequate”, but in a show of determination, Nasdaq—the exchange that would list BlackRock’s ETF—resubmitted the firm’s application yesterday. Will this attempt be successful? Only time will tell …
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