BlackRock CEO Says Bitcoin Could ‘Revolutionize Finance’

July 7, 2023 1:17 pm Comments

It looks like some of the world’s largest asset managers are now doubling down on digital assets as many have recently filed for a spot Bitcoin ETF.

This is quite the change from the perspective that many of them had held just a few years ago.

Just recently, BlackRock CEO Larry Fink had mentioned that Bitcoin could potentially revolutionize the world of finance.

A few years ago, Fink had criticized that crypto was heavily used for ‘illicit activities’, but he now describes it as an attractive international asset that investors like to invest in as an alternative.

This is because it is not tied to any country or particular currency which makes it extremely valuable for investors looking to diversify assets.

CoinDesk reports:

Fink continued: “Instead of investing in gold as a hedge against inflation, a hedge against the onerous problems of any one country, or the devaluation of your currency whatever country you’re in – let’s be clear, bitcoin is an international asset, it’s not based on any one currency and so it can represent an asset that people can play as an alternative.”

The iShares unit of BlackRock filed paperwork with the U.S. Securities and Exchange Commission (SEC) on June 16 for a spot bitcoin exchange-traded fund. While BlackRock has an almost perfect track record of getting ETFs approved by the SEC, Fink couldn’t say when a decision for its bitcoin ETF could be expected.

“We hope that, like in the past, we could be working with our regulators and get the filing approved one day, and I have no idea what that one day will be, but we’ll see how that all plays out.”

Fink then went on to compare Bitcoin to “digital gold” which indicates that the role of crypto is constantly evolving every year.

As for BlackRock’s recent ETF filing, it was mentioned that the bid-ask spread for crypto right now is still very expensive.

By having an ETF for this asset class, it would provide a way to democratize crypto as it would lower the fees needed to transact Bitcoin and move it in or out of the market.

BlackRock is not the only asset manager that has these type of views as many other large institutions have also recently jumped on the bandwagon.

MarketWatch reports:

BlackRock Chairman and CEO Larry Fink has never been outright dismissive of bitcoin, but he sure sounds more enthusiastic now that his firm, and others, are seeking regulatory approval for a spot bitcoin exchange-traded fund.

“I was skeptical because the early users were — it was heavily used for, let’s say, illicit activities,” said Fink in an interview on FOX Business Network that aired Wednesday afternoon.

In 2017, Fink said bitcoin was an “index of money laundering,” though his more recent comments have been more positive.

“I think, as it became more accessible — and, also, I do believe the role of crypto is — it is digitizing gold in many ways. Instead of investing in gold as a hedge against inflation, a hedge against the onerous problems of any one country or the devaluation of your currency, whatever country you’re in.”

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