Larry Fink, the CEO of Blackrock, the world’s largest asset manager, commented on the recent surge in Bitcoin’s price. He described it as an illustration of the growing interest in cryptocurrencies. Fink acknowledged that amidst the ongoing Israel-Hamas conflict, more individuals are turning to Bitcoin as a form of safe-haven investment, stating, “We are hearing from clients around the world about the need for crypto.”
It’s important to note that the initial rumor suggesting that the U.S. Securities and Exchange Commission (SEC) had approved Blackrock’s spot Bitcoin exchange-traded fund (ETF) application was later retracted by the source, Cointelegraph. However, Bitcoin experienced a brief spike in its price, followed by a drop back to the $28,000 level after the fake news report.
Larry Fink also highlighted that while some of the recent Bitcoin rally can be attributed to the rumor, he believes that the overall surge is a result of investors seeking quality assets due to global uncertainties such as the Israel-Hamas conflict and terrorism concerns. He suggested that people are turning to assets like Treasury bonds, gold, and cryptocurrencies like Bitcoin as a hedge against these geopolitical uncertainties.
Blackrock filed an application for Ishares Bitcoin Trust, a spot Bitcoin ETF, with the SEC in June. If approved, this trust will use Coinbase Custody as its custodian. Fink has previously stated that cryptocurrencies will have a significant role in the financial landscape beyond any single currency.
It’s worth noting that multiple financial institutions have applied for approval to launch spot Bitcoin ETFs with the SEC, but none have been approved so far. Some experts anticipate that the SEC may approve these applications within the next three to six months.
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Frequently Asked Questions (FAQs) about Bitcoin Rally
Q: What is the significance of Larry Fink’s comments on the Bitcoin rally?
A: Larry Fink, the CEO of Blackrock, sees the recent Bitcoin rally as an indicator of growing interest in cryptocurrencies, particularly in times of global uncertainty. He suggests that the rally reflects a “flight to quality” as investors seek safe-haven assets amidst events like the Israel-Hamas conflict.
Q: Did the SEC actually approve Blackrock’s spot Bitcoin ETF application?
A: No, the initial rumor suggesting that the U.S. Securities and Exchange Commission (SEC) had approved Blackrock’s spot Bitcoin ETF application was later retracted. The approval had not been confirmed by the SEC.
A: The Ishares Bitcoin Trust is a spot Bitcoin ETF that Blackrock applied for with the SEC. If approved, this trust would use Coinbase Custody as its custodian, allowing investors to gain exposure to Bitcoin through the ETF.
Q: Are there expectations for the SEC to approve Bitcoin ETF applications?
A: Some experts anticipate that the SEC may approve Bitcoin ETF applications within the next three to six months. However, as of now, none of these applications have been approved.
Q: Why are investors turning to assets like Bitcoin during global turmoil?
A: Investors often turn to assets like Bitcoin during times of global uncertainty because they see them as a hedge against geopolitical risks. These assets are viewed as a store of value that may perform well when traditional markets are volatile.
Q: How did the fake news report impact Bitcoin’s price?
A: The fake news report about the SEC’s approval of Blackrock’s Bitcoin ETF application led to a brief spike in Bitcoin’s price, followed by a drop back to the $28,000 level once the report was retracted. This highlights the sensitivity of cryptocurrency markets to news and rumors.
More about Bitcoin Rally
- Blackrock CEO Larry Fink Sees Global Demand and ‘Pent-up Interest in Crypto’ Amid Israel-Hamas War
- U.S. Securities and Exchange Commission (SEC)
- Ishares Bitcoin Trust
- Coinbase Custody
- Geopolitical Uncertainty and Safe-Haven Assets