The CEO of BlackRock, Larry Fink, recently shed some light on the increasing interest in cryptocurrencies among gold investors during a discussion on CNBC. His remarks hold special relevance today, given the growing curiosity for the digital currency in recent years. In particular, Fink noted the influence of exchange-traded funds (ETFs) in opening up access to gold investments and hypothesized about its similar potential influence on the crypto market.
Furthermore, Fink addressed the receding value of the US dollar in recent times and its appreciation over the past half-decade. In response to this, he expressed the argument that an international crypto product could serve as a valuable shield against such alterations. The broadened appeal of cryptocurrencies and their prospects impelled BlackRock to delve into the crypto market, aligning with its fundamental goal of democratizing investments.
However, Fink was not always bullish about the prospects of cryptocurrencies. Just four years ago, in 2017, his skepticism led him to link their growing popularity to money laundering. Yet, the mounting interests of clients and the exponential growth of cryptocurrency value finally coaxed BlackRock into exploring the idea of venturing into this domain.
Cryptocurrencies also offer an additional advantage by diversifying the investment portfolios, pointed out Fink. Their global reach and immunity from any single currency’s alterations distinguishes them from other asset classes. Another significant point emphasized by Fink is that any market that BlackRock steps into must primarily ensure safety and protection.
Lately, BlackRock reported its second-quarter results, with earnings per share on an adjusted basis standing at $9.28 amid a revenue of $4.46 billion. The assets under the management of the firm now surpass $9 trillion.
This recent vote of support for Bitcoin is not an isolated incident. There was a similar statement earlier from Fink who admired the potential of Bitcoin to reinvent the financial sector, likening it to “digitizing gold.” However, it seems that the US Securities and Exchange Commission (SEC) is now under increased pressure to greenlight a spot Bitcoin ETF, a move brokerage firm Bernstein considers highly probable. The SEC has already granted approval for futures-based Bitcoin ETFs and leverage-based futures ETFs, which further intensifies this likelihood.
Source: Cryptonews
