BlackRock: CEO Larry Fink speaks Bitcoin
BlackRock CEO Larry Fink recently spoke out in favor of Bitcoin, describing it as digital gold and a suitable alternative to fiat currencies. In the past, the American entrepreneur was one of the critics of the cryptocurrency. Increasing demand from institutional investors apparently brought about a turnaround.
BlackRock: CEO Larry Fink speaks Bitcoin
It has been a few weeks since BlackRock submitted its first application for a Bitcoin Spot ETF to the US SEC. Now CEO Larry Fink is speaking out for Bitcoin and is thus taking a stand during the political disputes in the USA.
In an interview with Fox Business, Fink commented on the latest developments in the US financial market. The American is understanding in the face of the application for a Bitcoin Spot ETF recently rejected by the SEC.
BlackRock is still pursuing the goal of being the first US company to successfully publish an exchange-traded fund that enables investors in the traditional financial market to invest in pure Bitcoin through an intermediary.
Already knew? How BlackRock wants to establish the first Bitcoin Spot ETF in the USA
Larry Fink made it clear that he listened to the SEC’s complaints to understand their concerns. Then it is his goal to find a consensus with the authority.
“Our track record of working with government agencies is amazing. We try to identify all possible problems with each application,” he explains.
By making the largest cryptocurrency accessible to a completely new target group, BlackRock aims to democratize it. You want to make the investment even easier and cheaper than before.
“Crypto can be an asset that people can use as an alternative [to fiat],” Fink states.
Recent price developments on the crypto market show how important such an assessment is considered by large financial companies . The sudden, unexpected entry of BlackRock and other well-known Wall Street firms sent Bitcoin skyrocketing above the $30,000 mark.
Larry Fink on Bitcoin: Has the Entrepreneur Become Purified?
The fact that a well-known entrepreneur from the classic financial sector like Larry Fink expresses positive words about Bitcoin and Co. is quite unusual. Fink has been a verbal opponent of cryptocurrencies alongside Warren Buffet and Charles Munger. In the meantime he seems to have been purified.
As late as 2017, the managing director and founder of the world’s largest asset manager described Bitcoin as a “money laundering scam”. In March 2022, he first told BlackRock shareholders that he wanted to get involved with digital currencies.
According to statements by the investment company, numerous inquiries from institutional investors caused BlackRock to rethink. The rapidly growing demand for the digital product Bitcoin was not to be missed.
In 2022, Fink then explained that a carefully installed system of digital currencies could even prevent money laundering and corruption. The 70-year-old contradicted his own earlier account. He now agrees with the popular belief that Bitcoin is digital gold.
The role of cryptocurrencies is to digitize gold to hedge against inflation and avoid currency devaluation. For this, a bitcoin can be used as an international asset instead of an investment in gold.
Bitcoin is an appropriate investment for BlackRock. Ultimately, the aim of the investment company is to make provisions for the future. Fink sees a lot of development potential in Bitcoin that one would like to exploit.
BlackRock’s foundation is hope. One invests as a precaution because one believes that the plant will be better off tomorrow than it is today.
MicroStrategy founder Michael Saylor was also an outspoken Bitcoin opponent years ago before completely changing his mind in 2020. Saylor is now one of the most well-known Bitcoin maximalists. The future will show whether Fink might have a similar development.
