A few weeks ago, BlackRock submitted a surprising application for the first spot-based Bitcoin ETF in the United States. Behind this move seems to lie a deeper trust in the digital currency. According to CEO Larry Fink, Bitcoin represents digital gold and an international currency that should be freely accessible.
For nearly three weeks, BlackRock has been seeking approval for a Bitcoin ETF based on spot markets. So far, the U.S. Securities and Exchange Commission (SEC) has rejected over 30 similar applications. However, the caliber of the world's largest asset manager could seriously challenge the authority's position. In an interview with FOX Business, BlackRock CEO Larry Fink explained his view on Bitcoin as an asset and the underlying idea behind the application for the ETF for the first time since its submission.
Subscribe to our newsletter
The best articles of the week, directly delivered into your mailbox.
Bitcoin: International digital gold
Just a few years ago, the entrepreneur shared the views of many bank chairpersons who believed that cryptocurrencies were nothing more than a vehicle for money laundering. However, the user base of Bitcoin has changed significantly since then, according to Fink. According to the BlackRock CEO, Bitcoin has now established itself as a serious alternative asset that can be used, similar to gold, to hedge against inflation and local policy errors. Therefore, Fink sees Bitcoin as "digital gold" and an "international asset."
The company's exchange-traded fund (ETF) aims to further democratize access to the crypto markets. Trading Bitcoin is still expensive and a spot-based ETF would improve accessibility for investors. Fink ultimately sees Bitcoin as a significant step in the tokenization of traditional assets, which could revolutionize the financial industry in the future.
What are the chances of approval?
While Fink was not able to provide further details about the Bitcoin ETF application during the FOX interview, his stance speaks volumes. The CEO of the $9 trillion asset manager is committed to addressing all concerns of regulatory authorities in the application process. So far, this approach has resulted in a clean success record. Out of 576 BlackRock ETFs submitted, the SEC rejected only one due to a new regulation in 2014. Therefore, Fink hopes for a successful approval of the first spot-based Bitcoin ETF.
"We want to democratize crypto by making its access much cheaper for investors. The bid-ask spread for cryptocurrencies is very expensive. It undermines a lot of the returns because it currently costs a lot of money to trade Bitcoin. So, we hope that our regulatory authorities view these applications as a way to democratize cryptocurrencies, and we will see how that plays out in the future." - Larry Fink, CEO BlackRock