Larry Fink, the CEO of BlackRock, recently discussed the spot Bitcoin exchange-traded fund (ETF) filing by his company and highlighted the potential benefits of cryptocurrency. Fink’s comments came during an interview on Fox Business on July 5. He emphasized that cryptocurrency, particularly Bitcoin, plays a role in “digitizing gold” and suggested that regulators in the United States should consider the potential of an ETF directly tied to Bitcoin in democratizing finance.
Throughout his tenure at BlackRock, Fink has frequently commented on significant events impacting the crypto space, such as the collapse of FTX in 2022 and the increasing interest in Bitcoin.
Fink emphasized that Bitcoin is an international asset that is not reliant on any specific currency. He suggested that it can serve as an alternative asset that people can utilize.
Furthermore, Fink proposed that investors could turn to BTC as a hedge against inflation or the devaluation of specific currencies. As the CEO of the world’s largest asset management firm, overseeing more than $9 trillion in assets under management as of April, Fink’s positive stance on cryptocurrencies could have far-reaching implications within and beyond the industry. He said,
“I do believe that the role of crypto is digitalizing gold in many ways,” he says. “Instead of investing in gold as a hedge against inflation (and) a hedge against the onerous problems of any one country, or the devaluation of your currency of whatever country you’re in, Bitcoin is an international asset.”
Spot Bitcoin ETF Raises Approval Uncertainty
Fink’s interview received a positive response from many crypto users on social media. Some even speculated that his remarks could lead to a surge in the prices of certain assets, dubbing it the “Fink Pump.” At the time of publication, the price of BTC stood at $30,473, reflecting a slight 1% drop over the past 24 hours.
Under Fink’s leadership, BlackRock has made attempts to launch a spot BTC ETF, partnering with the cryptocurrency exchange Coinbase for surveillance purposes. However, it remains uncertain whether the Securities and Exchange Commission will approve the investment vehicle, considering its history of rejecting previously filed spot Bitcoin ETF applications.