Larry Fink unpacks BlackRock’s approach to crypto, saying it can “transcend any one currency”
BlackRock CEO Larry Fink appeared on CNBC’s Squawk on the Street this morning, further propelling the excitement around the firm’s recent filing with the SEC for a spot Bitcoin Exchange-Traded Fund (ETF).
Importantly, Fink did not discuss Bitcoin (BTC) in the interview, being prohibited from doing so as BlackRock’s spot Bitcoin Exchange-Traded Fund (ETF) is still pending with the Securities and Exchange Commission (SEC).
“A differentiating value”
Fink nevertheless offered comments on crypto generally, saying, “We believe we have a responsibility to democratize investing. The role of ETFs in the world is transforming investing.” He compared crypto ETFs to the advent of gold ETFs, which “really democratize[d] gold investing” by reducing the cost of transactions significantly.
Crypto currently suffers from a similar problem and may benefit from a similar solution. “And now with crypto… the cost right now to transact is quite expensive. We’re talking points, not decimal points,” he elaborated.
BlackRock, the world’s largest asset manager, has a vested interest in the democratization of investing. The firm’s recent filing for a spot Bitcoin ETF has been met with increased enthusiasm from institutional investors, signaling a pivotal shift in the financial landscape.
Fink also noted, “Over the last five years, more and more global investors are asking us about the role of crypto,” highlighting crypto’s growing role as an international asset. He added, “It has a differentiating value versus other asset classes. But more importantly, because it’s so international, it’s going to transcend any one currency and currency valuation.”
This comes in stark contrast to Fink’s earlier remarks from 2018 when he expressed skepticism about the crypto industry. At that time, he said that BlackRock would not deal in crypto until it was “legitimate.” The recent ETF application suggests that Fink’s stance on crypto has notably evolved, indicating a potential sign that BlackRock considers crypto has met that threshold.
While Fink refrained from discussing the specific details of the Bitcoin ETF due to the ongoing SEC filing, his comments on crypto generally indicate an openness to exploring further integrating crypto assets into BlackRock’s investment strategy.
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