- Larry Fink believes that BTC ETFs can democratize crypto.
- Spot ETFs have led to an increase in BTC prices.
BlackRock CEO Larry Fink Says It’s Bitcoin [BTC] exchange-traded fund (ETFs) will make crypto more democratized. He said cryptocurrency’s role was largely to “digitize gold”.
Finn made these comments during a speech on Fox Business on July 5.
BlackRock’s CEO suggested that US regulators should consider how an ETF tied directly to BTC could democratize the financial world. He believed that Bitcoin is an international asset and said:
“It’s not based on any particular currency, and so it can be an asset that people can play as an alternative.”
Larry Fink, CEO of BlackRock:
2017: Bitcoin is a money laundering index.
2023: Bitcoin could revolutionize the financial world. Files for a Bitcoin ETF.
I’m old enough to remember… pic.twitter.com/CAX3mwb7DA
— Gabor Gurbacs (@gaborgurbacs) July 5, 2023
However, Gabor Gurbacs, VanEck’s Director, Digital Assets Strategy, was quick to remind the Twitter community of Fink’s previous views related to Bitcoin. In 2017, Fink had referred to Bitcoin as a “money laundering index”.
Microstrategy founder Michael Saylor approvingly quoted Link’s recent comments on Twitter.
#Bitcoin is an international asset. — Larry Fink, CEO of BlackRock pic.twitter.com/WIVKITXYPj
— Michael Saylor
(@saylor) July 5, 2023
Fink also suggested that investors can use Bitcoin as a hedge against inflation or currency depreciation.
The CEO had previously championed the decentralized nature of the crypto industry. When FTX collapsed in November 2022, he reasoned that FTX failed because it created its own centralized token. This, he said, was in stark contrast to the “whole basis of what crypto is.”
He had made these comments at the New York Times Dealbook Summit in 2022.
Will the SEC Approve BlackRock’s Bitcoin ETF Application?
Under Fink’s leadership, BlackRock attempted to start a mock Bitcoin ETF with cryptocurrency exchange Coinbase acting as a surveillance partner. We don’t know if the US Securities and Exchange Commission (SEC) will approve it at the time of writing, as the regulatory body has so far rejected all previously filed applications.
BlackRock is the world’s largest asset manager. It had more than $9 trillion in assets under management, Bloomberg reported in April.
BlackRock and other asset managers who have applied for spot Bitcoin ETFs have sparked a BTC price rally. At the time of writing, BTC was trading above $31,000, reflecting a modest 1.5% increase over the past 24 hours.
