Larry Fink, the CEO of BlackRock, has compared Bitcoin to gold, following the launch of spot Bitcoin ETFs. Despite this, he predicts a limited future for cryptocurrencies as a form of currency. In a discussion with CNBC about digital assets, ETFs, and tokenization, Fink revealed that BlackRock, the world’s largest asset manager, sees potential in spot Ethereum (ETH) ETFs as another crypto-related investment product. This follows the successful launch of similar funds backed by Bitcoin (BTC), the largest crypto token.
Fink explained that BlackRock considers cryptocurrencies as a potential asset class, with Bitcoin’s utility being similar to that of gold in terms of storing and protecting wealth. He also hinted at Bitcoin’s hardcoded supply limit of 21 million, with a halving event scheduled for April, suggesting that scarcity could drive future price increases.
BlackRock was among the 11 issuers that the Securities and Exchange Commission (SEC) approved to start trading spot Bitcoin ETFs on registered national exchanges such as the Nasdaq. These new ETFs attracted over $2 billion in trading volume on their first day, as Wall Street and traditional finance began to pay attention to the 15-year-old crypto market.
The focus of the crypto market is shifting from San Francisco to Wall Street. With approval, it is expected that pension funds, family offices, and other investors who have traditionally been skeptical will start to explore this new asset class. It is likely that we are approaching the next bull run.
Shortly after bidding for a BTC counterpart, Mesh, a company co-founded by Bam Azizi, filed for a spot ETH ETF. However, it remains uncertain whether the SEC will approve such products following the approval of spot BTC ETFs.
After the approval, SEC chair Gary Gensler emphasized that existing financial laws apply to most cryptocurrencies. He also stressed that the approval for BTC ETFs was not an endorsement of Bitcoin or other blockchain digital assets. He pointed out that the Grayscale ruling essentially supported the SEC’s decision.
Gensler referred to Bitcoin as a “non-security commodity”, a label not given to other cryptocurrencies like ETH. In response, ARK Invest CEO Cathie Wood argued that Gensler’s comments belittled crypto, while SEC Commissioner Hester Peirce criticized the SEC for wasting legislative resources by denying these products for over a decade.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Gary Gensler, Cathie Wood, Hester Peirce, Larry Fink, Bam Azizi |
| Companies | Securities and Exchange Commission, Mesh, ARK Invest, Nasdaq, BlackRock, CNBC |
| Currencies | Bitcoin, Ethereum, Gold |
| Securities | None |
