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Confirm the role of cryptocurrencies
Larry Fink, CEO of BlackRock, the largest asset management company in the United States, reaffirmed his bullish view on crypto assets on the CNBC program on the 14th. “Cryptocurrencies play a role in portfolio diversification for investors,” he said.
BlackRock is one of the world’s largest asset management companies, managing approximately $9.5 trillion in assets. I have just submitted an application for.
On the program “Squawk on the Street,” Mr. Fink talks about his approach to cryptocurrencies. “The move is in line with BlackRock’s broader mission to provide investors with easy-to-use, cost-effective products,” he said.
Fink has previously expressed skepticism about Bitcoin being used for “illegal activities.” But now, with strong customer interest and high transaction costs, BlackRock is seriously considering entering this emerging space, he said.
He did not mention Bitcoin directly, instead arguing that cryptocurrencies in general can form part of a diversified investment in an investor’s portfolio.
We face the challenge of democratizing investment. Over the past five years, we have received increasing inquiries from investors around the world about the role of cryptocurrencies. I believe that many cryptocurrencies should be viewed as international assets.
Fink also noted two characteristics of Bitcoin and other cryptocurrencies. It is tradable across borders and functions as an asset independent of fiat currency fluctuations.
Because cryptocurrencies are global, they transcend all fiat currencies in currency valuation. This “international crypto product” can overcome the problem of a weak dollar.
connection:What is an exchange traded trust “Bitcoin ETF” | Why the application of BlackRock attracts attention
Application for physical Bitcoin ETF
BlackRock’s filing of a physical Bitcoin ETF application with the SEC has brought new excitement to the cryptocurrency market. Other asset management companies have also applied for similar Bitcoin ETFs one after another.
The SEC has rejected all similar ETF applications filed to date, but BlackRock has 575 ETF applications to date that have been approved by the SEC, with only one being rejected. BlackRock’s developments show signs that the tide has turned.
In early July, BlackRock updated its physical bitcoin ETF application in response to the SEC’s findings. “Cryptocurrency exchange Coinbase” was specified as a contracted operator of the surveillance sharing agreement. The monitoring sharing agreement has been the SEC’s problem with previous Bitcoin ETF applications, and BlackRock is introducing this system to increase the chances of approval.
Fink declined to comment specifically on the Bitcoin ETF, but said, “We are working closely with regulators to ensure that any new market that BlackRock is involved with is safe, sound and adequately protected. It is our duty to make sure that
A physical Bitcoin ETF is a form of ETF that directly holds Bitcoin and calculates the value of investment products based on the amount. If ETFs directly backed by Bitcoin are approved in the future, the necessary price arbitrage could improve market liquidity, while reducing the amount of Bitcoin in circulation and increasing its scarcity. be.
CEO Larry Fink said last month on the Fox Business show that Bitcoin is a “global asset” that serves as the “digitization of gold.” He argued that an alternative to investing in gold as a hedge against inflation and currency devaluation risks would be to invest in bitcoin, a “global asset” that is not based on any national currency.
connection:BlackRock CEO Says Bitcoin Is Global Asset, Praises Its Role As Digital Gold
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