The head of the “secret world power” BlackRock finds words of praise for Bitcoin and promotes a direct index fund of the market-leading cryptocurrency.
BlackRock CEO Larry Fink spoke positively on American television about Bitcoin though probably not entirely altruistically, as the influential asset manager has only recently applied for a “direct ETF” for the cryptocurrency in the US.
Fink made the relevant remarks to Fox Business on July 5, when he first elaborated that the role of crypto is a kind of “digitization of gold.” Therefore, U.S. regulators should allow an index fund directly linked to Bitcoin to democratize access to the financial product. Fink has commented on crypto industry developments several times in the past, including the collapse of crypto exchange FTX in late 2022.
“This much is clear: Bitcoin is an international financial product,” as the BlackRock chief concludes. To which he adds, “Independent of individual country currencies, which is why it’s good as an alternative financial product for people.”
Fink believes that investors can use BTC as a hedge against inflation or against the devaluation of national currencies. And his words carry weight, as BlackRock manages more than $9 trillion in assets. US dollars (as of April 2023). So the CEO’s statement could make big waves inside and outside the crypto industry.
On social media, crypto investors have already reacted positively to Fink’s interview, with one user even predicting that there could be at least a small “Fink bounce” as a result. And indeed, the bitcoin price recently improved to a new high for the year.
But BlackRock is also looking to get actively involved in the market, as the investment firm recently filed for a direct Bitcoin index fund (ETF) with the U.S. Securities and Exchange Commission (SEC) in cooperation with Coinbase. Although the authority has so far rejected all such ETFs, experts believe that the chances are better, at least for the important asset management.
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