- BlackRock CEO Larry Fink says Bitcoin and crypto are digitizing gold, which can serve as a store of value and a hedge against inflation.
- Fink sees a future where blockchain technology replaces traditional financial intermediaries.
- BlackRock, along with other industry giants, recognizes the potential of Bitcoin to reshape the financial landscape.
Larry Fink, BlackRock CEO, has made some remarks concerning the role of cryptocurrencies in the financial world, noting that they are a kind of “Digital Gold” and identifying Bitcoin (BTC) as an international asset.
Speaking on a Fox Business interview on July 5, Fink said:
“Bitcoin is not based on any currency, so it can represent an asset that people can play as an alternative. It’s digitalizing gold in many ways. Instead of investing in gold as a hedge against the demanding problems of any one country or the devaluation of your currency of whatever country you’re in, Bitcoin is an international asset.”
Cryptocurrencies, such as Bitcoin, can be a digitized form of gold. This comes as gold was traditionally considered a shield against inflation and currency devaluation. It has provided investors with a haven in times of economic uncertainty.
Fink believes cryptocurrencies play a similar role, offering diversification and protection against individual countries and their currency challenges.
Considering Bitcoin as an international asset, BlackRock’s CEO emphasizes its potential as a global store of value.
Unlike traditional assets linked to particular jurisdictions, Bitcoin transcends borders and can be accessed by anyone with an Internet connection. This international nature makes Bitcoin an attractive option for investors seeking a hedge against geopolitical risks and currency fluctuation.
Further, Bitcoin has made an impressive run since this year’s commencement, posting an 83% rise, according to CoinGecko data. This move is noteworthy, considering a significant portion of the gains after BlackRock applied for a spot Bitcoin Trust ETF last month.
An ETF would allow investors to gain exposure to Bitcoin without directly owning the cryptocurrency. It would be a regulated and accessible investment vehicle for individuals and institutions wishing to participate in the digital asset market.
On June 3, Blackrock also resubmitted their filing after the SEC responded that the initial filings required more information regarding the exchange’s involved, subsequently adding Coinbase to the filing, as other firms refiling did.
The firm’s application stands among industry heavyweights, such as Ark, InStress Eco, VanEck, and Greyscale, who seek regulatory green light for similar crypto products.
Significantly, Fink’s perspective on the democratization of cryptocurrencies is shared by Nasdaq. The exchange operator included an oversight sharing agreement (SSA) from Coinbase in a Bitcoin ETF filing. The SSA aims to improve market integrity and combat fraud by allowing exchanges to share surveillance information.
BlackRock CEO’s Remarkable U-turn
On the other hand, Fink’s latest comments indicate a remarkable U-turn in his remarks back in 2018 concerning Bitcoin. At the time, he expressed caution about the cryptocurrency industry, stating that it needed time to mature and become “legitimate” before BlackRock would consider trading crypto assets or launching crypto-based ETFs.
During the New York Times Dealbook Conference in 2018, the CEO notably voiced concerns about the lack of regulation and backing for crypto-assets, suggesting they would need to be backed by a government before BlackRock would get involved.
However, in his interview with Fox Business, he stipulated that he was previously skeptical as Bitcoin was, in its early days,” heavily used for, let’s say, illicit activities.”
The televised statement underscores the conviction Fink, and likely BlackRock, has in Bitcoin and its potential role in the future. Fink’s recognition of Bitcoin’s international appeal further bolsters the case for increased institutional interest and investment.
In conclusion, the recent developments, including BlackRock’s pursuit of Bitcoin ETF and Fink’s remarks of Bitcoin as a digitized gold, reflect a shift in major financial institutions’ approach towards BTC. These developments suggest that BlackRock, along with other industry giants such as Nasdaq, recognizes the potential of Bitcoin to reshape the financial landscape.
