BlackRock CEO Larry Fink recently spoke out in favour of cryptocurrencies as the asset manager applied to list a Bitcoin exchange-traded fund (ETF) in the US.
On July 5, Fink claimed on Fox Business that the main function of cryptocurrencies was to “digitise gold,” and he advised American regulators to think about how an ETF that is directly tied to Bitcoin could democratise finance.
Fink frequently addressed significant developments in the cryptocurrency world when he was at BlackRock, such as the bankruptcy of FTX in 2022 and the rise in BTC popularity.
Michael Saylor shared the interview of Fink on Twitter that display, “Let’s be clear about one thing: Bitcoin is a global asset,” said Fink. Since it is not dependent on a specific currency, it can be traded as an alternate asset that individuals can use for investment purposes.
Fink proposed that investors could use Bitcoin as a hedge against price increases or the depreciation of particular currencies.
As the CEO of the largest asset management company in the world with more than $9 trillion in assets under management as of April, Fink positive comments may have impacts both inside and outside the market.
Many cryptocurrency users on social media responded favourably to Fink’s interview, with at least one claiming that his statements would trigger a price spike for specific assets that they termed the “Fink Pump.”
At the time of writing the article, the price of BTC was $31,369, which had increased by almost 2% in the previous 24 hours.
BlackRock tried to introduce a spot BTC ETF under Fink, with Coinbase, a digital currency exchange, serving as a partner in surveillance.
It is still uncertain whether the Securities and Exchange Commission will authorised the BTC ETF, because they had already rejected every application for a spot BTC ETF that has been submitted.
