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The global reach of digital currencies enables them to surpass any single national currency, such as the U.S. dollar, stated BlackRock CEO Larry Fink on Friday.
In an interview, the executive emphasized the distinct characteristics that set crypto apart from other asset categories, as well as the potential role BlackRock could assume in this domain.
Making Crypto Accessible Through ETFs
In a conversation with CNBC, Fink underscored BlackRock’s objective to “democratize investing” by developing products that are affordable and user-friendly for investors, noting that this ambition could also apply to crypto assets.
“We believe we have a responsibility to democratize investing,” he remarked. “We’ve made significant progress, and the function of ETFs in the global market is reshaping investing. We are just at the outset of this journey,” he added.
An ETF, or exchange-traded fund, is a fund that trades on an exchange and mirrors a specific index. Investors purchase shares of the fund, and fund managers utilize these investments to acquire stocks, bonds, crypto, or other assets that the fund aims to track.
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Last month, BlackRock submitted a proposal to the U.S. Securities and Exchange Commission (SEC) to introduce a Bitcoin spot ETF in the United States. Since June, Bitcoin has experienced a surge in value due to optimism that BlackRock might be the first to receive approval for such a product, given its strong success rate with the SEC in the past.
Fink anticipates that a growing segment of the crypto market will be represented by ETFs in the future, and he pointed out how the introduction of a gold ETF “democratized” gold investment by making transactions with the asset more accessible.
The CEO stated that BlackRock could replicate this model for crypto: “The cost to transact is quite expensive,” he noted. “Over the past five years, an increasing number of global investors have been inquiring about the role of crypto.”
Crypto Compared to Other Currencies
Fink also acknowledged crypto as an “international asset” capable of “transcending any one currency,” referencing concerns over the devaluation of the U.S. dollar. “An international crypto product can truly overcome that,” he stated, adding that the asset class has garnered “broad-based” and “global” interest.
His remarks were positively received by Bitcoin advocates like MicroStrategy’s Michael Saylor, who frequently promote Bitcoin as a superior savings technology compared to dollars due to its limited supply.
Fink refrained from commenting specifically on Bitcoin, citing restrictions due to his ongoing SEC filing. The SEC officially acknowledged the filing this week.
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