- BlackRock CEO Larry Fink highlighted his optimism towards cryptocurrencies due to the increasing demand among gold investors.
- BlackRock applied to list a spot Bitcoin (BTC) ETF through a surveillance sharing agreement last month.
- Earlier this month, Fink praised Bitcoin for its potential to revolutionize the finance sector, referring to it as the “digitization of gold.”
Fink, CEO of investment management giant BlackRock, which applied for a spot Bitcoin ETF in June, evaluated the increasing demand in Bitcoin.
Fink Expresses Increasing Optimism Against Crypto Demand
BlackRock CEO Larry Fink expressed his optimism towards cryptocurrencies based on the growing demand among gold investors. In an interview following BlackRock’s second-quarter earnings report, Fink noted that in the past five years, “more and more” gold investors have been asking questions about the role of cryptocurrencies.
Fink emphasized the potential similarity between exchange-traded funds (ETFs) democratizing access to gold and their potential impact on the cryptocurrency market.
He also highlighted the decline in the value of the U.S. dollar in recent months and the appreciation of cryptocurrencies over the past five years, suggesting that an international crypto product could provide protection against such fluctuations.
“We believe that there are huge opportunities and we are seeing greater interest. The interest is broad-based and global.”
BlackRock applied to list a spot Bitcoin (BTC) ETF through a surveillance sharing agreement last month. This could be a decisive factor in the approval process, as the U.S. Securities and Exchange Commission (SEC) has previously rejected numerous applications for such a product.
According to Fink, BlackRock’s entry into the cryptocurrency market aligns with the company’s goal of creating user-friendly and cost-effective investment products.
“We believe we have a responsibility to democratize investing. We have done a great job and ETFs are transforming the world of investments. And we are only at the beginning.”
Fink had expressed skepticism about cryptocurrencies in 2017, linking their popularity to money laundering activities. However, customer interest and the rise in cryptocurrency values prompted BlackRock to explore possibilities in the market.
Fink Says Bitcoin Can Help Investors Diversify Their Portfolio
Fink said that Bitcoin could help diversify investors’ portfolios:
“It has an extraordinary value proposition compared to other asset classes, but more importantly, because it’s so international, it will cross borders unlike any currency.”
Fink avoided discussing the direct spot Bitcoin ETF and mentioned the restrictions of the SEC application process, but he emphasized that BlackRock prioritizes security and protection in every market it enters.
On Friday, BlackRock announced its second-quarter results, reporting earnings of $9.28 per share and $4.46 billion in revenue. The company’s assets under management now exceed $9 trillion. This is not the first time Fink has expressed support for Bitcoin since BlackRock applied for the spot ETF.
Earlier this month, he praised Bitcoin for its potential to revolutionize the finance sector and referred to it as the “digitization of gold.” A recent research report by Bernstein also suggested a high likelihood of the SEC approving the spot Bitcoin ETF in the near future.
