BlackRock CEO Larry Fink Highlights Growing Demand for Cryptocurrencies from Gold Investors

Source: Adobe/MichaelVi

black rock CEO Larry Fink has expressed optimism about the growing demand for cryptocurrencies among gold investors.

in a interview with CNBC Following the release of BlackRock’s second-quarter earnings report, Fink stated that “increasingly” gold investors have been asking about the role of cryptocurrencies over the past five years.

He mentioned the impact of exchange traded funds (ETFs) in democratizing access to gold, noting that they could have a similar effect on the crypto market.

Fink pointed to the depreciation of the US dollar in recent months and its appreciation over the past five years, stressing that an international crypto product could provide a hedge against these fluctuations.

“That’s why we think there are great opportunities and why we’re seeing increasing interest. And the interest is broad and global.”

BlackRock filed an application last month to include a spot Bitcoin (BTC) ETF with a shared watchdog arrangement.

This could be a determining factor in the US Securities and Exchange Commission (SEC) finally approving such a product, after rejecting numerous requests in the past.

According to Fink, BlackRock’s foray into the cryptocurrency market aligns with the company’s goal of creating easy-to-use and profitable investment products.

“We believe we have a responsibility to democratize investing. We’ve done a great job and the role of ETFs in the world is transforming investing. And we’re only at the beginning of that.”

Fink previously expressed skepticism about cryptocurrencies in 2017, attributing its popularity to money laundering.

However, customer interest and the rising value of cryptocurrencies have prompted BlackRock to explore entering the market.

Fink Says Bitcoin Can Help Investors Diversify Their Portfolio

Fink also emphasized the diversification benefits of cryptocurrencies in investors’ portfolios.

“It has differentiating value against other asset classes, but more importantly, because it’s so international, it’s going to transcend any currency,” he said.

While Fink refrained from speaking directly about the spot Bitcoin ETF, citing restrictions during the SEC filing process, he assured that BlackRock would prioritize the safety and security of any market it enters.

On Friday, BlackRock reported its second-quarter results, posting adjusted earnings per share of $9.28 on $4.46 billion in revenue. The company’s assets under management now exceed $9 trillion.

This is not the first time Fink has voiced support for Bitcoin since BlackRock filed an application for a spot ETF.

Earlier this month, he praised Bitcoin for its potential to revolutionize the financial industry, comparing it to the “digitization of gold.”

It is worth noting that the brokerage firm Bernstein has said that there is a strong possibility that the SEC will soon approve a spot Bitcoin ETF.

In a recent investigative report, Bernstein said the SEC is under increasing pressure to give such a product the green light, specifically because the commission has already granted approval for futures-based bitcoin ETFs and equity ETFs. leverage-based futures.