- July 17, 2023
- Posted by: [email protected]
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Larry Fink, CEO of BlackRock, has declared his support for cryptocurrencies, emphasising their role in democratising investment globally. Fink observed an increase in client interest in digital assets, emphasising their potential value as a diversification tool.
Fink stated that global investors are getting increasingly interested in cryptocurrency during an interview with CNBC’s Squawk on the Street on July 14. As the world’s largest asset manager, overseeing over $8 trillion in assets across various investment products, BlackRock is closely attuned to market trends and investor preferences.
Fink believes that cryptocurrencies offer unique attributes that differentiate them from other asset classes, making them valuable additions to investment portfolios. He particularly emphasised their international nature, suggesting that they have the potential to transcend any single currency.
Despite expressing his positive stance on cryptocurrencies, Fink refrained from commenting on BlackRock’s application for a Bitcoin exchange-traded fund (ETF) in the United States. The filing is currently awaiting approval from the Securities and Exchange Commission (SEC). Fink emphasised the company’s commitment to ensuring the safety and security of any product bearing the BlackRock name, especially in a new and evolving market like cryptocurrencies.
While the SEC has previously rejected several applications for Bitcoin ETFs, BlackRock’s application has revived hopes for imminent approval, considering the firm’s successful track record of securing ETF approvals. Bloomberg Intelligence’s analysts, Eric Balchunas and James Seyffart, revealed that BlackRock has filed 550 ETF applications and experienced only one rejection.
Fink highlighted BlackRock’s mission to democratise investing, asserting that ETFs play a transformative role in the investment landscape. He believes that this is just the beginning of the ETF revolution, with tremendous potential ahead.
BlackRock’s application has sparked a wave of similar filings for ETF products in the United States. Other asset managers, including Fidelity, Bitwise, 21Shares, WisdomTree, and Invesco, are also in line for potential approval.
While awaiting the SEC’s decision, Europe is poised to witness the launch of its first spot Bitcoin ETF later this year, led by London-based firm Jacobi Asset Management. The product, which was originally scheduled for 2022 but was delayed due to the weak market, has seen a gradual shift in demand since last year, reflecting the increased interest in crypto investments.
Larry Fink’s remarks demonstrate BlackRock’s recognition of the global significance of cryptocurrencies and their potential to reshape the investment landscape on an international scale.
