Blackrock CEO Larry Fink says the company has a good track record of working with regulators on The Claman Countdown.
BlackRock CEO Larry Fink may be biased when it comes to his company’s application for a spot Bitcoin exchange-traded fund, but he tells FOX Business that the product is suitable even for investors.
“What we want to do with cryptocurrencies is to democratize them more with all cryptocurrencies and make them a lot cheaper for investors,” Fink said during an interview at The Claman Countdown. “Cryptocurrency supply range is very expensive. It actually eats into a lot of returns…because it currently costs a lot of money to trade Bitcoin and it costs a lot of money to get out of it. And we hope that our regulators will see these filings as a way to democratize cryptocurrencies and we will see how that plays out in the future,” he added.
BlackRock was the latest to file with the Securities and Exchange Commission for a spot Bitcoin ETF last month. The company’s iShares Bitcoin Trust, if approved by regulators, will use Coinbase Custody as a custodian, giving investors exposure to the largest cryptocurrency by market cap without buying it outright, while a spot bitcoin ETF will track the underlying market price of bitcoin would track.
Fink declined to provide more details than are contained in the public filing or how regulators might interpret them.
FOXBUSINESS.COM: LIVE CRYPTO PRICES
But he believes a Bitcoin product like this can do what traditional ETFs have done for the mutual fund industry.
“ETFs have been a huge revolution in the mutual fund industry and they’re really taking over the mutual fund industry. And we believe that if we can create greater tokenization of assets and securities, and that’s what bitcoin is, it could revolutionize finance again,” he noted.
While BlackRock is undoubtedly a heavyweight with $9 trillion in assets, it also joins a long list of firms with similar filings denied by the SEC, including Grayscale, which is suing the SEC for debunking. Fidelity and CBOE were also shot down by regulators.
BITCOIN LOYALTY SURROUNDS THE $31,000 LEVEL
As for the volatile price of bitcoin and other cryptos, the sheer interest of BlackRock and others is credited with helping propel the price of bitcoin above $30,000 and off its 52-week low to recover by over 95% from $15,602.37 in November 2022 as tracked by the Dow Jones Market Data Group.
EDX Markets launched the first-of-its-kind digital asset marketplace with the backing of Charles Schwab and Fidelity, also backed by Citadel Securities, Sequoia Capital and Virtu Financial. It launched on June 20th.
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“News of a new exchange powered by Fidelity and [Charles] Schwab and applications for spot bitcoin ETFs submitted by BlackRock and Wisdom Tree. “Bitcoin believers have long argued that the more traditional financial names increase their exposure to digital assets, the more entrenched they are and the broader their adoption,” said Jim Iuorio of TJM Institutional on CME Active Trader, as recently reported by FOX Business.