Larry Fink's comments highlight BlackRock's strong interest in cryptocurrencies after the company unveiled a local Bitcoin ETF.
The CEO of asset management giant BlackRock Inc (NYSE: BLK) recently said that there is a “need for crypto” among many of the company’s customers. Fink made the announcement in an interview with Fox Business on Monday.
BlackRock CEO believes customers need cryptocurrencies
Fink spoke after the U.S. Securities and Exchange Commission (SEC) approved BlackRock Inc.'s iShares Bitcoin exchange-traded fund (ETF). In response to the news, the price of Bitcoin rose from around $27,900 to $30,000. Regarding the news and the rise of Bitcoin, Fink said:
“This is an example of the interest in cryptocurrencies. “Customers around the world tell us that cryptocurrencies are needed… I think today’s meeting is about the flight to quality with all the problems related to the war in Israel and global terrorism.”
Fink accepts Bitcoin in advance. In an interview with Fox Business in July, Fink said that Bitcoin could revolutionize the financial system. This is an interesting reversal of the CEO's aversion to cryptocurrencies. Fink has spoken out against cryptocurrencies, saying they can easily be used for illegal activities.
The SEC is reviewing a number of Bitcoin ETF applications, including one from Blackrock. In June, BlackRock filed with the SEC to designate cryptocurrency exchange Coinbase (NASDAQ: COIN) as its custodian.
The SEC has yet to approve a preliminary application for Bitcoin ETFs. Last month, the commission delayed a decision on several proposals, including those from BlackRock, Valkyrie, VanEck, Bitwise and WisdomTree.
The SEC may soon accept the spot Bitcoin ETF
Bloomberg analysts James Seyffart and Eric Balchunas believe the SEC has a 95 percent chance of approving a Bitcoin ETF this year. Thanks to the Grayscale SEC win, the pair had previously increased its odds to 65%. In August, the US Court of Appeals for the D.C. Circuit ruled in favor of Grayscale. In response to this decision, the price of Bitcoin rose by more than 7%.
JPMorgan analysts led by Nikolaos Panigirtzoglou also predicted that the SEC would approve a Bitcoin ETF following Grayscale's victory. While the court rejected spot ETFs, it ruled that there was no reason to approve a Bitcoin ETF based on futures contracts. According to JPMorgan, Grayscale’s continued rejection of GBTC exchange offers means the SEC “must actively roll back previous approvals of futures-based Bitcoin ETFs.” Analysts point out that this would have disastrous consequences for the SEC and the cryptocurrency market.
Galaxy Digital CEO Mike Novogratz also believes that the SEC will soon approve a Bitcoin ETF spot. According to the CEO of the Million, the approval will take place by February. During Galaxy Digital's second-quarter earnings conference call in August, Novogratz said the approval would come "in four to six months."
Galaxy Digital also partnered with Invesco and filed an amended application with the SEC in June.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to distill cryptocurrency stories down to the essentials so that anyone, anywhere can understand them without needing too much information. When Tolu is not interested in cryptocurrency stories, he enjoys music, reading, and is a film buff.