There was a time when experts from traditional finance did not think positively of Bitcoin. Some expected it to just fade, just like any other fad. Other doubters called it magic internet money. But times have changed, and even financial icons are starting to include Bitcoin (BTC) in their investment portfolios. And doubters like BlackRock CEO Larry Fink are starting to talk positively about the king of cryptocurrencies.
Larry Fink, an American billionaire and CEO of BlackRock, once said that Bitcoin was an “index of money laundering.” He was implying that BTC was mainly used for illicit transactions, and its value is mainly driven by anonymous transactions. However, he has changed his tune and is now calling Bitcoin an “international asset.” A statement that was received well by the crypto community.
Dissecting Larry Fink’s Stance on Bitcoin and Their Spot BTC ETF
In this interview with Fox Business, Larry Fink touched on a lot of positive points for Bitcoin and its spot BTC ETF.
- BlackRock has a good track record on ETF approvals. This is evident with their track record of having 575 approved applications and only one rejection. According to Larry, the company works closely with regulators to solve any issues surrounding their applications. This is exactly what happened when the Securities and Exchange Commission said that its initial spot BTC ET application lacked the name of its surveillance-sharing partner. BlackRock promptly updated its application and named Coinbase as its partner.
- Larry also thinks they can democratize crypto by making it cheaper to use. He said that most investors will lose profit because of high blockchain transaction fees. He believes that ETFs will make digital assets more accessible to investors.
- The BlackRock CEO also said that Bitcoin is digitized gold, which can be used as a hedge against uncertainties. In the same line, he also said that the foundation of his company is hope, and people invest for retirement in the belief that tomorrow is better than today. This a strong statement since it reinforces a lot of Bitcoin holders’ belief that the king of crypto is the best hedge against inflation and economic uncertainties. This is in line with presidential candidate Robert Kennedy Jr’s statement that BTC is hope and an escape route.
- Fink believes that BTC is not dependent on one country or one currency, making it an international asset. Not being tied up with a central authority is one of the goals of Bitcoin.
- Larry Fink also discussed that blockchain’s ledger could make custodians obsolete since everything can be traced. However, he did say that we are still a long way from making this transition.
Larry Fink is Not First Financial Icon to Recognize BTC, and He Won’t Be the Last
The crypto community is ecstatic that a known figure in traditional finance is recognizing that Bitcoin is the next level of finance, but he was not the first to do so. For example, we have Ark Invest CEO Cathy Wood, who thinks that Bitcoin will surpass one million dollars by 2030. We also have Microstrategy’s Michael Saylor, who is known in the crypto world as a big Bitcoin bull. Mark Cuban, billionaire and owner of the Dallas Mavericks, prefers to own Bitcoin over gold.
Billionaires who were once crypto skeptics are now starting to realize that Bitcoin is digital gold. It is just a matter of time before other billionaires and millionaires join the bandwagon. There are 2.640 billionaires and 56 million millionaires in the world. If you do the math, Bitcoin’s 21 million supply cap won’t be enough for everybody.
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