BlackRock CEO Larry Fink says there is increasing global interest in cryptocurrency and a spot Bitcoin (BTC) exchange-traded fund (ETF) could lower investment costs.
In a new interview with CNBC’s “Squawk on the Street,” Fink say just as gold ETFs reduced the cost of investing in the precious metal, a Bitcoin ETF would likely do the same for the king crypto.
He says a Bitcoin ETF would also open up the king crypto to a wider pool of investors as global demand for crypto investments increases.
According to Fink, one of the reasons for the growing interest is the belief that crypto can act as a hedge against depreciating fiat currencies like the US dollar.
“We have a responsibility to democratize investing. And we did a great job. And the role of ETFs in the world is transforming investing. And I think we’re just at the beginning…
And now, with crypto, the idea of democratizing that role. The cost of transacting now is quite expensive. We’re talking points, not decimals. And so that’s a big point. Over the past five years, more and more international investors are asking us about the role of crypto, and as I said, I do believe that a lot of crypto will become… it’s an international asset. It has a distinctive value from other asset classes, but more importantly, because it is so international, it will transcend any currency and currency valuation.
If you just look at the value of our dollar, how it has fallen in value over the past two months, and how much it has fallen over the past five years, an international crypto product can really transcend that. And that’s why we believe there’s great opportunity and that’s why we’re seeing increasing interest. And that interest is broad, worldwide.”
Black rock applied for a spot Bitcoin ETF on June 15 with the US Securities and Exchange Commission (SEC), which has yet to approve one.
says fink,
“We’re working with our regulators because we want, as in any new market, if BlackRock’s name is on it, we’ll make sure it’s safe and sound and protected.”
Bitcoin is trading at $31,236 at the time of writing, up 1.2% in the past 24 hours.
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