The crypto industry is making headway in gaining support from major players on Wall Street, with BlackRock being a notable example. BlackRock Founder and CEO Larry Fink previously called Bitcoin a “money laundering index” in 2017. However, in 2023, BlackRock applied for a Bitcoin spot ETF and Fink praised Bitcoin, stating that Bitcoin could revolutionize finance and digitization. gold.
Other prominent figures in the financial world, such as Ken Griffin of Citadel Securities, have also changed their minds about the crypto sector. Griffin previously called it a “jihadist cry” against the USD, but the company now supports platforms for institutional investors to trade digital currencies. Fidelity Investments, the largest 401(k) administrator in the US, is also into the crypto space, enabling workers to invest in Bitcoin and invest in new crypto exchanges through its subsidiary, Fidelity Digital Assets.
Initially, the crypto industry aimed to disrupt Wall Street and the US financial system. However, it now appears that Wall Street is joining the ranks of the crypto industry. The shift comes at a time when the crypto sector is relatively weak, after a year-long bear market and increased regulatory scrutiny from the US SEC.
The current situation in the US has put the crypto industry at a crossroads, with interest in digital assets declining due to falling prices, company failures, and regulatory crackdowns. However, the financial giant saw an opportunity to offer regulated crypto products and services, attracting users who were willing to accept these offers.
The question now is whether the crypto industry’s goal of democratizing finance can survive the current treatment from regulators. According to Matthew Sigel of VanEck, assets often move from weak to strong hands during a bear market, and this seems to be the case in the crypto sector as well.