BlackRock CEO Larry Fink Highlights Pent-Up Demand for Bitcoin
According to BlackRock CEO Larry Fink, the recent surge in Bitcoin’s price to over $30,000, caused by an incorrect report of an approved ETF, indicates a strong demand for the dominant cryptocurrency. Fink also stated that Bitcoin’s recovery can be attributed to a “flight to quality” amid geopolitical tensions. He mentioned global terrorism and the Israeli war as factors driving investors towards cryptocurrencies as a safe haven.
Bitcoin’s False Rally and Current Price
Bitcoin briefly reached $30,000 following false reports of the US Securities and Exchange Commission (SEC) approving BlackRock’s spot Bitcoin ETF filing. However, BlackRock swiftly denied these claims and confirmed that their iShares Spot Bitcoin ETF is still under review. Despite the correction, Bitcoin remains 4.4% higher than before the false news broke, currently trading at $28,456.
BlackRock’s Aim to Democratize Crypto
In June, BlackRock filed for a spot Bitcoin ETF and expressed its desire to “democratize crypto.” The asset management giant hopes to expand access to cryptocurrencies and address issues such as expensive transaction fees. Former BlackRock director Steven Schoenfield predicts that spot Bitcoin ETFs could gain approval as early as January 2024 and attract up to $200 billion in Bitcoin investment products.
Fink’s Changing Stance on Bitcoin
Larry Fink has not always held a positive view of Bitcoin. In 2017, he referred to it as an instrument for money laundering. Additionally, in 2020, he expressed concerns about how Bitcoin could challenge the dominance of the US dollar as the world’s reserve currency.
Hot Take: BlackRock CEO Acknowledges Strong Demand for Bitcoin
BlackRock CEO Larry Fink’s comments highlight the pent-up demand for Bitcoin and its role as a flight to quality during times of geopolitical uncertainty. The false rally caused by the ETF approval rumor demonstrates the market’s eagerness for regulated investment vehicles. As BlackRock aims to democratize crypto and improve access to digital assets, the potential approval of spot Bitcoin ETFs could bring significant investment into the space. Despite Fink’s previous skepticism, his acknowledgment of Bitcoin’s demand and potential impact on traditional currencies suggests a changing perspective within the financial industry.
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