BlackRock CEO Larry Fink Changes Stance on Bitcoin
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BlackRock, the world’s largest asset manager with a $9 trillion investment arsenal, is bullish on Bitcoin. The company’s CEO, Larry Fink, said in a recent interview with Fox Business that Bitcoin is an “international asset” that can “revolutionize” finance.
He also said that Bitcoin and crypto are “digitizing gold” and that they can potentially serve as a hedge against inflation.
Fink’s positive comments come as BlackRock is working on launching a spot Bitcoin exchange-traded fund (ETF), which would allow investors to buy and sell Bitcoin directly through a regulated platform. BlackRock has filed an application with the US Securities and Exchange Commission (SEC) for its ETF, but it is still waiting for approval.
Fink Says BlackRock Ready to Work with the SEC on BTC ETF Concerns
Fink said he is willing to work with regulators to address their concerns and make crypto more accessible and affordable for investors. He said he hopes that BlackRock’s ETF can help “democratize crypto” by lowering the costs and barriers to entry.
“We look at this as an opportunity to move one step further in terms of providing investors fractions of shares, fractions of this, [and] democratizing the cost of investing,” he said.
Fink admitted that he was skeptical of crypto in the past, given its use for “illicit activities.” But he said he has changed his mind as he sees more potential and innovation in the space.
“I do believe the role of crypto is digitizing gold in many ways,” he said.
What Does This Mean for Bitcoin?
Well, it could be a bullish sign, as BlackRock’s endorsement could attract more institutional and retail investors to the crypto market. It could also increase the chances of getting a spot Bitcoin ETF approved in the US, which would boost the liquidity and legitimacy of Bitcoin.
Fink’s comments are especially interesting and significant for the outlook on the benchmark cryptocurrency, considering the BlackRock boss hasn’t always been the “best of friends” with Bitcoin. While BTC has yet to react to the comments, the medium-to-long-term effects of these comments could be substantial in putting more bounce in the price of Bitcoin.
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