Crypto industry luminary Larry Fink, at the helm of BlackRock, the world’s largest asset management powerhouse with a staggering $9.4 trillion in assets under its purview, offered his perspective on the recent upswing in Bitcoin’s price, which occurred in response to erroneous reports about the approval of a Bitcoin ETF. Fink shared his insights during an interview with Fox Business on Monday, shortly after a tumultuous rollercoaster ride that witnessed significant fluctuations in the prices of Bitcoin and various other digital assets.
The sudden surge and subsequent dip in prices were mainly triggered by a false report circulated by cryptocurrency media outlet Cointelegraph. This report falsely claimed that the United States Securities and Exchange Commission (SEC) had granted approval for BlackRock’s proposed Bitcoin ETF. For a brief period, Bitcoin’s price soared above $30,000 before retreating to the $28,000 range following the publication of this report.
However, BlackRock promptly refuted these rumors, confirming that its ETF application, like those of its competitors, remained under review. In response to these developments, BlackRock’s CEO Larry Fink participated in an interview with Fox Business to discuss the situation. Fink shared his perspective, highlighting that “a significant portion of this surge exceeds the impact of the [Bitcoin ETF approval] rumor.”
Crypto Gains Traction as the Quest for Quality Intensifies
Fink underscored that the recent surge in the cryptocurrency market is primarily driven by a strong desire for high-quality assets. Specifically, the CEO of BlackRock pointed to the escalating conflict in Israel and the growing global threat of terrorism as factors prompting investors to seek refuge in assets like treasuries, gold, and cryptocurrencies. He firmly believes that cryptocurrencies can serve as a safe haven asset class.
Moreover, Larry Fink highlighted the recent market rally as an illustration of the pent-up interest in cryptocurrencies. He noted that BlackRock clients worldwide are increasingly expressing a demand for exposure to cryptocurrencies, which has motivated the firm to respond to this demand.
BlackRock has already introduced a trust that provides clients with direct access to Bitcoin. The firm is also actively pursuing approval for a Bitcoin exchange-traded fund (ETF). In the meantime, the recent statements made by the CEO of BlackRock concerning cryptocurrencies signify a shift in his perspective on Bitcoin and other digital assets. Back in July, Larry Fink characterized Bitcoin as a global asset and likened it to digital gold.