Larry Fink’s comments reveal BlackRock’s strong interest in crypto following the company’s application for a spot Bitcoin ETF.
CEO of asset management giant blackrock inc (NYSE:BLK) recently said there is a “need for crypto” among many of the company’s customers. Fink made the revelation in an interview on Fox Business on Monday.
BlackRock CEO believes customers need crypto
Fink spoke just hours after it was rumored that the United States Securities and Exchange Commission (seconds) approved BlackRock Inc.’s iShares Spot Bitcoin exchange-traded fund (ETF). In response to the news, the price of Bitcoin increased from approximately $27,900 to $30,000. Referencing the news and the Bitcoin rally, Fink said:
“This is an example of pent-up interest in crypto. We are hearing from customers around the world about the need for crypto… I think today’s rally is about the flight to quality, with all the issues of the Israeli war, global terrorism.
Fink has previously spoken out in support of Bitcoin. In a July Fox Business interview, Fink said that Bitcoin could revolutionize the financial system. This was an interesting change from the CEO’s previous dislike for cryptocurrencies. Fink had expressed his opposition to crypto, saying that it can easily be used for illegal activities.
Currently, the SEC is reviewing several applications for a spot Bitcoin ETF, including an application from BlackRock. In June, BlackRock Presented An application to the SEC naming a crypto exchange coinbase (NASDAQ: COIN) as custodian.
The SEC has not yet approved any spot Bitcoin ETF applications. Last month, the Commission delayed Decision on several proposals including BlackRock, Valkyrie, VanEck, Bitwise and WisdomTree.
SEC may soon approve spot Bitcoin ETF
Bloomberg analysts James Seifert and Eric Balchunas faith There is a 95% chance the SEC will approve a spot Bitcoin ETF this year. Given Grayscale’s win over the SEC, the two had previously placed the probability at 65%. In August, the US Court of Appeals for the DC Circuit Government In favor of Grayscale regarding converting its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF. In response to the decision, the price of Bitcoin jumped more than 7%.
So too did JPMorgan analysts led by Nikolaos Panigirtzoglou. Predicted The SEC will likely approve a spot Bitcoin ETF after Grayscale’s win. The court had ruled that there was no justification for approving a futures-based Bitcoin ETF while rejecting spot ETFs. According to JPMorgan, the continued rejection of Grayscale’s proposal to convert its GBTC means the SEC will have to “retroactively withdraw its previous approval of a futures-based Bitcoin ETF”. Analysts said doing so would have serious consequences for the SEC and the crypto market.
Galaxy Digital CEO Mike Novogratz also believes that the SEC will soon approve a spot Bitcoin ETF. According to the billionaire CEO, the approval will be received by February. During Galaxy Digital’s second-quarter earnings call in August, Novogratz said approval would come in “four to six months.”
Galaxy Digital also collaborated with Invesco and submitted an advanced application to the SEC in June.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to strip down the secrets of crypto stories to the basics so that anyone anywhere can understand without too much background knowledge. When Tolu is not deeply immersed in crypto stories, he enjoys music, loves to sing and is an avid film buff.
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