BlackRock CEO Talks Bitcoin! Will Spot ETFs Be Approved?
Larry Fink, CEO of BlackRock, made an important statement about Bitcoin (BTC) during a Fox Business live event. Fink refers to Bitcoin as “digital gold” and emphasizes its significance as an international asset. He showed interest in hearing from regulators about Bitcoin ETFs.
It is important to note that Fink’s position on Bitcoin has shifted. In 2017, he called Bitcoin a “money laundering index.” However, in March 2022, he notified shareholders that BlackRock was aggressively researching digital currencies, stablecoins, and their underlying technology to evaluate their consumer profit potential. He emphasized the potential of a well-designed global digital payment system to enhance international transactions while reducing the risks of money laundering and corruption.
Fink explained, saying, “I believe the role of cryptocurrency in many ways is to digitize gold.” As an international asset, BTC can be used as an investment alternative to gold, acting as a hedge against inflation and currency depreciation. Because Bitcoin is not tied to one currency, it can be a versatile asset for people.”
Regarding Bitcoin ETFs, Fink stressed BlackRock’s commitment to working with authorities and analyzing all relevant aspects of any application. While he couldn’t go into specifics about the application, he does hope that cryptocurrencies will become more accessible and cost-effective for investors. Fink emphasized the importance of dealing with the huge buy-sell spreads in the crypto market, which are now eroding a significant amount of prospects for returns. According to him regulators will see this application as a way to democratize cryptocurrencies.
It’s important to note that the previous words are not intended as investment advice but rather a summary of Larry Fink’s comments about Bitcoin and its future position in the economic environment.
