- Larry Fink, CEO of BlackRock, expects cryptocurrencies to surpass all traditional currencies, including the US Dollar, in the coming years due to their international reach.
- BlackRock, the world’s largest asset manager, has applied for a Bitcoin ETF, signalling its pivot towards embracing cryptocurrencies, despite initial pushback from the SEC.
In an extraordinary shift from his previous stance, Larry Fink, CEO of BlackRock, has expressed an increasingly positive perspective on digital assets, with the bold prediction that cryptocurrencies will eventually surpass all traditional currencies. Known for managing over $8.5 trillion in assets, BlackRock’s swing towards endorsing the crypto realm could herald a new era in the financial markets.
A Sea Change in Perception
Fink’s revelation comes as a surprise for many, as the renowned financial figure was previously quite critical of the crypto space. Back in 2017, Fink remarked that Bitcoin was merely a testament to the global demand for money laundering. Fast forward to today, and Fink seems to have had a change of heart, aligning BlackRock’s trajectory with the ascending crypto path.
“Being an international phenomenon, [crypto] is poised to transcend all individual currencies in terms of currency evaluation,”
Fink explained to CNBC. He also indicated that the potential devaluation of the US Dollar only serves to bolster the case for cryptocurrencies.
In a nod towards democratizing investing, last month BlackRock applied for a Bitcoin Spot ETF with the US Securities and Exchange Commission (SEC), sending shockwaves through the crypto industry. This bold move was followed by other asset management giants, including Fidelity and Ark Invest.
SEC Hurdles and Forward Strides
However, the first applications from BlackRock and its counterparts were rejected by the SEC. Unfazed, these asset managers have resubmitted their applications, with the final verdict from the SEC still pending.
“We believe that we have a responsibility to democratize investing,”
said Fink, referencing BlackRock’s Bitcoin ETF application.
“We’re working with our regulators, because, as with any new market, if BlackRock’s name is on it, we need to ensure it’s safe, solid, and protected.”
Despite his optimistic view, Fink refrained from commenting directly on the Bitcoin Spot ETF due to ongoing proceedings with the SEC. Yet, he affirmed that client interest and the costly nature of transactions have stimulated BlackRock’s interest in the crypto market.
With BlackRock’s Q2 earnings at $9.28 in adjusted EPS on $4.46 billion revenue, and with more than $9 trillion in assets under management, Fink’s crypto-positive stance, coupled with BlackRock’s foray into Bitcoin ETFs, could indeed signify a forthcoming pivot in the global financial landscape.