- 1 With BlackRock filing for a Bitcoin ETF, the crypto space is brimming with hope and positivity.
- 2 In an interview, Fink remarked how BlackRock contributes towards the “responsibility to democratize investing.”
The cryptocurrency market was overwhelmed since BlackRock reported filing for a spot Bitcoin ETF. The instance of the biggest asset management fund venturing into the crypto space with the leading cryptocurrency boosted morale in the crypto space.
Stepping towards cryptocurrencies resembles the broader mission of BlackRock for creating cheap and easy-to-use investment products for investors, remarked Larry Fink, the CEO of the asset management giant firm, in an interview with CNBC.
As reported, during the interview Fink stated that BlackRock has the “responsibility to democratize investing.” He cited the firm’s past success and optimism on the transformation of investing with exchange-traded funds (ETFs). CEO asserted the tradfi company to be at the starting point of initiative with the ETFs.
BlackRock Spot Bitcoin ETF Filing
TheCoinRepublic reported earlier when BlackRock filed an application for a spot Bitcoin ETF with the United States Securities and Exchange Commission (SEC) on June 15, 2023. According to the filing, iShares Bitcoin Trust ETF would have leading crypto exchange Coinbase as its custodian.
The SEC has historically not been in favor of spot ETFs as inferred from rejecting the applications in the past. Though futures Bitcoin ETFs were lucky in terms of getting approval, the crypto space in the United States is yet to see a spot investment fund.
With the filing of BlackRock for the investment fund, the broader crypto space is optimistic for approval given the past record of the company. As several reports suggest, the company has a score of 575 to 1 in terms of getting approval for its applications.
Moreover, the company had tried to eliminate the concerned portions within the offerings of ETF. The proposal from BlackRock added an agreement for surveillance sharing.
BlackRock’s CEO, Larry Fink, expressed the company’s commitment to ensuring safety and security in a new market. Fink emphasized the importance of collaborating with regulators, highlighting that BlackRock is proactive in working alongside them. The objective is to guarantee the utmost protection for any venture bearing BlackRock’s name.
BlackRock Changed Perception Towards Cryptocurrencies
In 2017, Fink had voiced skepticism towards cryptocurrencies, attributing their popularity partly to money laundering activities.
Fink acknowledged that BlackRock’s perspective on cryptocurrencies has evolved due to client demand and the significant transaction costs associated with the traditional financial system. This prompted the company to explore the possibility of entering the crypto space more seriously. Fink further highlighted that cryptocurrencies can play a role in diversifying investor portfolios, emphasizing their potential benefits in this regard.
Fink emphasized the unique value proposition of cryptocurrencies compared to other asset classes, pointing out their ability to transcend national currencies due to their universal nature. This global reach is seen as a key characteristic that sets cryptocurrencies apart, making them potentially valuable in the investment landscape.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.