BlackRock CEO Larry Fink has backed cryptocurrencies while talking about the asset manager’s recent application for a spot Bitcoin exchange-traded fund (ETF) in the US.
Fink referred to cryptocurrencies as a way of “digitizing gold” in an interview with Fox Business on July 5. He also asked regulators to take into account the potential financial democratization brought about by a Bitcoin-linked ETF. Fink, known for commenting on cryptocurrency developments, emphasized Bitcoin as a global asset independent of any currency. This makes it a desirable alternative investment.
— Michael Saylor⚡️ (@saylor) July 5, 2023
Fink suggests Bitcoin as a potential hedge against inflation and currency depreciation, attracting diversification-seeking investors. Fink’s supportive view on cryptocurrencies has the potential to affect market sentiment both inside and outside the industry. Fink, the CEO of BlackRock, oversees the largest asset management company globally, managing over $9 trillion in assets.
Fink’s comments received great feedback from the cryptocurrency community on social media. Some speculated that his words might cause an increase in asset prices and ironically called it the “Fink Pump”. The price of Bitcoin was $30,473 at the time of writing, a 1% decline from the previous day.
Under Fink’s direction, BlackRock has worked to introduce a spot Bitcoin ETF and has partnered with cryptocurrency exchange Coinbase for monitoring purposes. Given that the Security Exchange Commission (SEC) has a history of rejecting applications for spot Bitcoin ETFs that have already been filed, it is still unclear whether the investment vehicle will be approved.