BlackRock CEO Larry Fink has spoken out in favor of cryptocurrencies as the asset manager files to list a spot bitcoin exchange-traded fund (ETF) in the United States.
Speaking on Fox Business on July 5, Fink said the role of cryptocurrencies is primarily to “digitize gold,” advising U.S. regulators to consider how an ETF tied directly to Bitcoin (BTC) could democratize finance. During his tenure at BlackRock, Fink frequently commented on major events affecting the cryptocurrency space, including the collapse of FTX in 2022 and the rise in interest in BTC.
“Let’s be clear: Bitcoin is an international asset,” Fink said. “It’s not based on any one currency, so it can represent an asset that people can play with as an alternative.”
#bitcoin is an international asset. – Larry Fink, CEO, BlackRock pic.twitter.com/WIVKITXYPj
— Michael Saylor ⚡️ (@saylor) July 5, 2023
Fink suggested that investors could turn to bitcoin as a hedge against inflation or the devaluation of certain currencies. As CEO of the world’s largest asset manager (over $9 trillion in assets under management as of April), Fink’s pro-crypto sentiment could have ripples in and out of the space.
related: BlackRock CEO: Developed markets lag behind in digital payments
Many cryptocurrency users on social media reacted positively to Fink’s interview, at least one of them suggestion His words could cause the price of certain assets to skyrocket, with users dubbing it a “Fink Pump.” At press time, BTC was priced at $30,473, down around 1% over the past 24 hours.
Under Fink, BlackRock attempted to launch a spot BTC ETF with cryptocurrency exchange Coinbase as a monitoring partner. Given that the SEC has rejected all previously submitted spot BTC ETF applications to date, it is unclear whether the investment vehicle will approve the investment vehicle.
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