Blackrock CEO Larry Fink: Bitcoin Rally Reflects Growing Interest in Crypto
Larry Fink, the CEO of Blackrock, the world’s largest asset manager, commented on the recent bitcoin rally, stating that it is a result of the increasing interest in cryptocurrency. Fink mentioned that clients from around the world have been expressing their need for crypto assets. While he did not confirm any specifics, his remarks came after a rumor circulated that the U.S. Securities and Exchange Commission (SEC) had approved Blackrock’s spot bitcoin ETF application.
The Rumor and Bitcoin’s Response
Crypto news outlet Cointelegraph spread the rumor on social media that the SEC had given approval for Blackrock’s spot bitcoin ETF. However, the news outlet later retracted the story. As a result of the fake news report, bitcoin experienced a spike of nearly 10% before dropping back to around $28,000.
Bitcoin Rally as a Flight to Quality
Fink suggested that the current rally in bitcoin is driven by a flight to quality amid global issues such as the ongoing Israel-Hamas war and terrorism concerns. He believes that more people are seeking safe havens like Treasury bonds, gold, and crypto assets to protect their investments.
Blackrock’s Bitcoin ETF Application
In June, Blackrock filed an application for Ishares Bitcoin Trust, a spot bitcoin ETF with Coinbase Custody as its custodian. The approval from the SEC is still pending. Fink has previously expressed his belief that cryptocurrencies will surpass any individual currency.
SEC and Bitcoin ETFs
Several financial institutions have applied for spot bitcoin ETFs with the SEC, but none have been approved thus far. Recently, U.S. lawmakers called on the SEC to expedite the approval process for these applications. Steven Schoenfeld, a former executive at Barclays Global Investors, expects the SEC to approve all bitcoin ETF applications within the next three to six months. The deadline for the SEC to appeal the circuit court decision regarding Grayscale Investments’ application also passed without any appeal from the SEC.
Hot Take: Bitcoin Rally Reflects Growing Demand Amid Global Uncertainty
The recent surge in bitcoin’s price can be attributed to the increasing demand for cryptocurrency as a safe investment option amidst global instability. Blackrock CEO Larry Fink believes that investors are seeking quality assets like bitcoin, gold, and Treasury bonds to protect their wealth during times of geopolitical tensions and terrorism concerns. While rumors of Blackrock’s spot bitcoin ETF approval may have contributed to the rally, it highlights the growing interest in crypto assets worldwide. As more financial institutions apply for bitcoin ETFs, it remains to be seen when the SEC will grant approval and further legitimize cryptocurrencies as mainstream investments.
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