A strong ally in crypto. The democratization of cryptocurrencies is well and truly underway. We’re not the ones saying it, but Larry FinkCEO of BlackRock. The manager of over $10,000 billion in assets hammers home his vision on CNBC. And the least we can say is that the executive has nothing but praise for this « digital gold ».. The start of a major crypto movement?
Bitcoin: an international currency according to BlackRock
On June 15, BlackRock announced the submission of its Spot ETF on Bitcoin. The announcement triggered a further upward movement in the price, but more importantly, a return of institutional enthusiasm for this new asset class. Demand Spot Bitcoin ETFs were not long in coming from all competing investment funds, such as Fidelity or Valkyrie.
Admittedly, Larry Fink is advertising his product. But his statements are powerful, and are having a definite impact on the general public’s and market professionals’ view of the crypto sector, which until now has been shunned :
« Cryptos are international assets that transcend currencies. »
On CNBC, the famous American channel, the CEO doesn’t dry no praise for Bitcoin and its future ambitions:
« We believe we have a responsibility to democratize investing. We’ve done a good job so far. The role of ETFs (exchange-traded funds) in the world is to transform investing, and we’re only at the beginning. »
Admittedly, the battle is far from won, since until then, the SEC (Security Exchange Commission) rejected all requests for Spot ETFs on Bitcoin. BlackRock was far from the first to come up with the idea, of course. Nevertheless, several factors combined could well change the gamethis time.
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ETF Spot Bitcoin: stars aligning?
First, we’re talking about BlackRock, the world’s largest asset manager. Its influence is immense. Second, the SEC is today in difficulty following the court decision rendered in the case against Ripplethe issuer of the XRP token.
If cryptos are not securities, Gary Gensler’s authority over these assets is clearly weakened. So how can we refuse? Moreover, the context in recent years has changed. Cryptos are more democratized and better known. The links with traditional finance are more numerous.
« We’re working with the regulator, because in any new market, if the BlackRock name is going to be put on it, we’re going to make sure it’s safe, sound and protected. »
Larry Fink
The combination of these factors could well tip the balance in favor of ETF acceptance. As a result, huge amounts of capital could suddenly flow into the sector. Enough to launch the next bull run ?
For BlackRockthe cryptos are a way to diversify your portfolio of assets. If investment funds start allocating even a small percentage of their capital to cryptos, apart from the impact on share prices, this would give full legitimacy to these digital assets. Bitcoin, Ethereum and all the others could thus enter through the front door in the complex world of traditional finance.
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