- January 12, 2024
- Posted by: legaleseblogger
- Category: Related News
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Larry Fink’s Views on Bitcoin and BlackRock’s Involvement in Spot ETFs
Larry Fink, CEO of BlackRock, recently made headlines when he compared Bitcoin to gold, shortly after the launch of spot BTC ETFs. This comparison comes with his belief that cryptocurrencies are not likely to become widely accepted as currency.
BlackRock, the world’s largest asset manager, has shown interest in digital assets, ETFs, and tokenization as Fink discussed in an interview with CNBC. Fink expressed BlackRock’s positive outlook on spot Ethereum (ETH) ETFs as a new investment product, following the successful launch of similar funds backed by Bitcoin (BTC).
He elaborated that BlackRock sees cryptocurrencies as a potential asset class, with Bitcoin serving as a means to store and protect wealth similar to gold. Fink also touched on Bitcoin’s limited supply of 21 million coins and the upcoming halving in April, highlighting scarcity as a factor that could drive future price increases.
Notably, BlackRock was among the issuers approved by the SEC to trade spot Bitcoin ETFs on national exchanges like the Nasdaq. The launch of these ETFs saw over $2 billion in trading volume on the first day, signaling a significant shift as traditional finance institutions embrace cryptocurrency.
“CryptoÔÇÖs center of gravity is shifting from San Francisco to Wall Street. Upon approval, we can expect to see pension funds, family offices, and other historically skeptical investors entering this new asset class. Most likely, weÔÇÖre nearing the next bull run,” said Bam Azizi, co-founder and CEO of Mesh.
Bam Azizi, Co-founder and CEO, Mesh
In response to this development, BlackRock filed for a spot ETH ETF, although uncertainty looms over whether the SEC will approve such products following the endorsement of spot BTC ETFs.
Following the approval, SEC chair Gary Gensler reaffirmed that existing financial laws apply to most cryptocurrencies. Gensler also emphasized that the approval for BTC ETFs did not signify an endorsement of Bitcoin or other blockchain digital assets, citing the Grayscale ruling as a precedent for the SEC’s decision.
Gensler specifically classified Bitcoin as a “non-security commodity,” a distinction not extended to other cryptocurrencies like ETH. This stance prompted differing reactions, with ARK Invest CEO Cathie Wood criticizing Gensler for undermining the crypto market, while SEC Commissioner Hester Peirce criticized the SEC for denying these products for over a decade and wasting legislative resources.
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