BlackRock CEO Larry Fink has expressed support for Bitcoin (BTC), referring to it as an “international asset” that could revolutionize finance.
In a recent interview on Fox Business, Fink stated that his company is keen on reducing the cost and complexity associated with investing in Bitcoin.
He said that he believes this move would democratize the cryptocurrency market and make it more accessible for retail investors.
“What we’re trying to do with crypto is make it more democratized with all of crypto and making it much cheaper for investors,” Fink said during an interview on The Claman Countdown.
“The bid spread for crypto is very expensive. It does erode a lot of the returns….because it costs a lot of money right now to transact Bitcoin and it costs a lot of money to get out of that. And so, we hope that our regulators look at these filings that as a way to democratize crypto and we’ll see in the future how that plays out.”
To achieve this goal, BlackRock filed paperwork last month to establish an exchange-traded-funds (ETF) that directly invests in Bitcoin.
Following the announcement, several other investment issuers also rushed to file similar applications, triggering a surge in Bitcoin’s price to over $30,000.
The cryptocurrency has already recorded a 12% increase in June alone and an impressive 80% surge since the beginning of the year.
BlackRock’s application was recently refiled by Nasdaq, with additional details indicating that Coinbase will provide market surveillance for the new product.
Fink emphasized the importance of regulatory approval from the Securities and Exchange Commission (SEC), stating that the company wants to work closely with regulators to ensure a smooth launch.
“We look at this as an opportunity,” Fink said. “We work really closely with our regulators.”
Fink also praised Bitcoin for its potential to revolutionize the financial industry, comparing it to “digitizing gold.”
While initially skeptical due to concerns about illicit activities associated with the cryptocurrency, Fink now sees it as a viable alternative asset on a global scale.
Brokerage firm Bernstein believes that there is a strong possibility that the SEC will soon approve a spot Bitcoin ETF.
In a recent research report, Bernstein said the SEC is under increasing pressure to greenlight such a product, specifically since the commission has already granted approval for futures-based bitcoin ETFs and leverage-based futures ETFs.
The reasoning behind these approvals is that futures pricing comes from regulated exchanges like the CME.
However, the SEC remains hesitant about spot Bitcoin ETFs due to concerns about the regulation of spot exchanges such as Coinbase and the potential for price manipulation, according to analysts led by Gautam Chhugani.
Despite receiving numerous applications, the SEC has yet to approve a spot Bitcoin ETF.
The absence of a Bitcoin spot ETF has led to the growth of over-the-counter (OTC) products like Grayscale’s Bitcoin Trust (GBTC).
Bernstein noted that these OTC products are more expensive, illiquid, and inefficient compared to ETFs.
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