In a recent interview, BlackRock CEO Larry Fink expressed his belief that cryptocurrencies have the potential to transcend the dominance of traditional national currencies, including the U.S. dollar. Fink emphasized the unique characteristics of digital assets and highlighted the role BlackRock can play in the crypto space. With its mission to democratize investing, BlackRock aims to create accessible and affordable products for investors, including crypto assets.

Democratizing Crypto Through ETFs

Fink spoke to CNBC about BlackRock’s commitment to democratizing investing. He emphasized the success and transformative impact of exchange-traded funds (ETFs) in the investment world, and he sees the potential for ETFs to extend to the realm of cryptocurrencies. ETFs are investment funds that trade on exchanges and track specific indexes. They provide investors with the opportunity to gain exposure to a diverse range of assets, including stocks, bonds, and potentially cryptocurrencies.

BlackRock recently filed with the U.S. Securities and Exchange Commission (SEC) to launch a Bitcoin spot ETF in the United States. This move has fueled optimism in the market, as many believe that BlackRock’s track record of success with the SEC could increase the chances of the approval of such a product. Fink suggested that as the crypto market evolves, a significant portion of it will be represented by ETFs. He drew a parallel to the introduction of gold ETFs, which democratized gold investing by making it more affordable and accessible to a broader range of investors.

Lowering Transaction Costs in Crypto

Fink recognized the high cost of transacting in the crypto market. He believes that BlackRock can contribute to reducing these costs and making crypto investments more accessible. By creating ETFs focused on cryptocurrencies, BlackRock could provide a convenient and cost-effective way for investors to gain exposure to digital assets. Fink stated, “The cost to transact is quite expensive… more and more global investors are asking us about the role of crypto.” BlackRock’s expertise and scale in the investment industry position the company to play a significant role in expanding access to crypto investments.

Fink acknowledged that cryptocurrencies have gained recognition as international assets. He highlighted their ability to transcend any single national currency, expressing concerns about the potential devaluation of the U.S. dollar. Fink believes that an international crypto product could address this concern and attract broad-based and worldwide interest. His comments resonated with Bitcoin enthusiasts, such as MicroStrategy’s Michael Saylor, who advocate for cryptocurrencies as superior savings technology due to their limited supply.

Ongoing SEC Filing and Positive Market Reception

While Fink refrained from commenting specifically on Bitcoin due to BlackRock’s ongoing SEC filing, his remarks were well received by the crypto community. The formal recognition of BlackRock’s Bitcoin ETF filing by the SEC further fueled optimism in the market. As one of the world’s largest asset management firms, BlackRock’s foray into the crypto space signals increasing institutional interest and provides a vote of confidence for the industry as a whole.

Larry Fink’s belief that cryptocurrencies can transcend the dominance of traditional national currencies highlights the evolving nature of the financial landscape. As more investors recognize the value and potential of digital assets, the demand for accessible and cost-effective investment products will likely continue to grow. BlackRock’s focus on democratizing investing through ETFs positions the firm to play a significant role in the future of crypto investments. While challenges remain, such as regulatory hurdles and market volatility, the recognition and endorsement from major financial institutions like BlackRock indicate that cryptocurrencies are increasingly being seen as a legitimate and transformative asset class.

The post BlackRock CEO: Crypto Can Transcend The Dollar And Other Currencies appeared first on Crypto Academy.

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Filed under: Bitcoin - @ July 15, 2023 10:48 pm