BlackRock CEO Larry Fink has emphasized the significance of cryptocurrencies in promoting financial inclusivity worldwide, highlighting the growing interest of the company’s clients in digital assets. In an interview with CNBC’s ‘Squawk on the Street’ on July 14, Fink revealed that an increasing number of global investors are seeking information about crypto. BlackRock, which manages over $8 trillion in assets across various investment products, is the largest asset manager globally.
Fink believes that cryptocurrencies offer a unique value proposition compared to other asset classes by contributing to portfolio diversification. He emphasized their international nature, stating that they have the potential to transcend any particular currency. This suggests that cryptocurrencies can provide advantages such as hedging against currency fluctuations and offering exposure to different markets.
While Fink expressed his support for cryptocurrencies, he refrained from commenting on BlackRock’s recent application for a spot Bitcoin exchange-traded fund (ETF) in the United States. The application is currently undergoing review by the Securities and Exchange Commission (SEC). Fink emphasized the importance of working with regulators to ensure the safety and security of any market associated with BlackRock’s name.
The SEC has previously rejected numerous applications for Bitcoin ETFs in the past. However, BlackRock’s filing has generated optimism among market participants due to the company’s successful track record in getting ETFs approved. According to Bloomberg Intelligence, BlackRock has filed 550 ETF applications and has only been rejected once. This demonstrates BlackRock’s expertise in navigating regulatory processes, which could potentially increase the chances of its Bitcoin ETF being approved.
Fink reiterated BlackRock’s commitment to democratizing investing, emphasizing the transformative role of ETFs in the financial world. He stated that ETFs are revolutionizing investment and that BlackRock is only at the beginning of this transformation. As BlackRock’s application for a Bitcoin ETF progresses, other asset managers such as Fidelity, Bitwise, 21Shares, WisdomTree, and Investco have also filed for similar products in the United States.
While the wait for a US Bitcoin ETF continues, Europe is set to witness the launch of its first spot Bitcoin ETF later this year. Jacobi Asset Management, based in London, plans to debut the product after a delay caused by the bear market in 2022. The demand for a spot Bitcoin ETF has been steadily increasing in Europe, with Jacobi recognizing the shifting dynamics of the market since last year.
In conclusion, Larry Fink’s remarks on cryptocurrencies’ role in democratizing investing align with BlackRock’s commitment to inclusivity. The company’s clients’ growing interest in digital assets reflects the broader trend of increasing adoption and recognition of cryptocurrencies as a legitimate investment asset class. As the regulatory landscape evolves, the industry eagerly anticipates the SEC’s decision on BlackRock’s Bitcoin ETF application and the potential impact it could have on the market. Meanwhile, Europe prepares to launch its first spot Bitcoin ETF, signaling the global appetite for crypto-related investment products.
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