In an interview with Fox Business, Larry Fink, the CEO of Blackrock, the world’s largest asset manager, expressed his views on bitcoin, crypto investments, and the company’s spot bitcoin trust exchange-traded fund (ETF) filing. Fink stated that bitcoin is a global asset and can serve as an alternative to gold for hedging against inflation, the economic challenges faced by countries, and currency devaluation. Blackrock, known for its successful ETF approvals, is actively collaborating with regulators to obtain approval for its spot bitcoin trust ETF filing.
Larry Fink Discusses Bitcoin, ETF Filing, and Crypto Democratization
During the interview, Larry Fink, the chairman and CEO of Blackrock, shed light on various aspects of the company’s involvement in the cryptocurrency market. Blackrock submitted an application to the U.S. Securities and Exchange Commission (SEC) on June 15, seeking approval to launch a spot bitcoin trust ETF. Since then, the price of bitcoin has surged, fueled by optimism within the crypto community regarding the imminent approval of the first spot bitcoin ETF in the United States. Blackrock recently resubmitted its application, naming Coinbase, a crypto exchange listed on Nasdaq, as the custodial surveillance partner for the spot bitcoin trust. Blackrock boasts an impressive track record, with only one rejection among its 576 ETF filings.
When asked about the likelihood of the SEC approving a Blackrock ETF, Fink emphasized the company’s commitment to long-term investors and its history of working closely with regulators. He mentioned that they value the input of regulators and strive to address any concerns they may have. Fink expressed hope that the filing would be approved someday but acknowledged the uncertainty surrounding the timeline. Furthermore, Fink discussed the potential of bitcoin, highlighting its role in digitizing assets and securities, which he believes could revolutionize the financial industry. He expressed the desire for regulators to view these filings as a means to democratize crypto.
Fink admitted that he initially had reservations about bitcoin, primarily due to its association with illicit activities during its early adoption. However, he recognized the cryptocurrency’s potential as a digital equivalent of gold, offering a hedge against inflation and currency devaluation on an international scale. Fink clarified that he personally does not own bitcoin, as his investments are limited to mutual funds and ETFs.
Regarding the underlying technology of bitcoin, Fink expressed his enthusiasm for blockchain. He highlighted its ability to expedite transactions and provide transparent identification of buyers and sellers. Fink speculated that such advancements could potentially eliminate the need for custodians and disrupt the entire financial process and intermediaries. However, he acknowledged that widespread adoption of this technology is still a long way off, comparing it to the ongoing progress and possibilities of artificial intelligence.
Frequently Asked Questions (FAQs) about bitcoin hedge
What is Blackrock’s CEO Larry Fink’s view on bitcoin and crypto?
Larry Fink, CEO of Blackrock, believes that bitcoin can be used as a hedge against inflation, currency devaluation, and economic challenges. He sees crypto as an alternative to gold and emphasizes the potential for digitizing assets and securities.
What is Blackrock’s approach to obtaining approval for a spot bitcoin trust ETF?
Does Blackrock own bitcoin?
Larry Fink clarified that he personally does not own bitcoin. Blackrock’s investments primarily consist of mutual funds and ETFs.
What are Larry Fink’s thoughts on the underlying technology of bitcoin?
Larry Fink believes that the underlying technology of bitcoin, blockchain, is fantastic. He sees its potential in accelerating transaction processes and enabling transparent identification. While he envisions a future with reduced reliance on custodians, he acknowledges that widespread adoption of this technology is still a long way off.
How does Blackrock aim to democratize crypto?
Blackrock aims to democratize crypto by advocating for the tokenization of assets and securities. They believe that increased accessibility and inclusion in the crypto market can bring about a revolution in finance. They hope that their filings for ETF approvals will contribute to the broader democratization of cryptocurrencies.