In an interview with Fox Business, Larry Fink, CEO of BlackRock, the world's largest asset manager, drew parallels between Bitcoin and gold, claiming that the cryptocurrency is "digitizing" gold.
Since the start of 2023, Bitcoin has made an impressive run, posting an 83% rise. This move is particularly noteworthy considering a significant portion of the gains happened after BlackRock filed an application for a spot Bitcoin Trust ETF in mid-June.
The firm's application stands among many others from industry heavyweights, such as Ark, InStress Eco, VanEck, and Greyscale, who are all seeking regulatory green lights for similar crypto products.
BlackRock has a strong track record with the Securities and Exchange Commission (SEC). Of the firm's 576 ETF applications, only one has been rejected. This strategic move showcases BlackRock's commitment to crypto adoption and its determination to work alongside regulators to develop solutions for crypto-based investments.Fink believes in the potential of tokenizing assets and securities, seeing it as the next revolution for the finance industry. The company is optimistic about making investing more accessible, specifically for Bitcoin and other cryptocurrencies, with its ETF offerings.
The BlackRock boss outlined that the costly bid-ask spread for cryptocurrencies would be reduced, making transactions less expensive and ensuring more profits for investors. Fink envisions this democratization of crypto as a step towards increased financial inclusivity.
Initially, Fink shared some skepticism about cryptocurrencies due to their early adoption for illicit activities. However, he has since shifted his perspective, recognizing the value of Bitcoin as a hedge against inflation and as an international asset not tied to any one currency.
Despite the skepticism about the utility of the underlying blockchain technology, Fink sees the potential for the technology to improve transaction speed and traceability, effectively replacing some traditional financial intermediaries. Despite this, he admits the world is "not close" to reaching this point yet, implying there's much more room for growth and development in this space.