Weekly SmartPills #15
LARRY FINK OF BLACKROCK PRAISES BITCOIN AS "DIGITAL GOLD" AND PUSHES FOR THE APPROVAL OF THE SPOT ETF
Larry Fink, CEO of BlackRock, recently expressed his confidence in Bitcoin's role as the new "digital gold." In an interview with Fox Business, Fink stated that he wants to work with U.S. regulatory authorities to obtain approval for his spot Bitcoin ETF and address all the concerns raised.
According to Fink, Bitcoin represents the digitalization of gold—a channel that makes the precious metal accessible to everyone in digital form.
The fight for ETF approval
Fink emphasized the ongoing work with regulators to address concerns related to the security of custody. The goal is to make cryptocurrencies more democratic and cost-effective for investors.
According to the CEO of BlackRock, trading costs for cryptocurrencies are currently high and harmful to returns. Approval of the spot Bitcoin ETF by regulatory authorities could open the door to a more accessible market and "democratize" the entire sector.
Last week, BlackRock, through Nasdaq, submitted an updated approval application for its Bitcoin ETF after the Securities and Exchange Commission (SEC) deemed the previous documents "unclear and incomplete."
The updated filing appears to have addressed the highlighted gaps and includes Coinbase as the custodian of the potential ETF's funds.
BTC, the digital gold
Although he does not personally hold Bitcoin, Fink emphasized the importance of the asset in the broader process of product digitalization. BlackRock believes in digitalization and recognizes the role of Bitcoin as an international asset that can serve as an alternative for anyone.
BlackRock’s filing of the ETF application last month paved the way for other asset management firms, such as Fidelity, to follow suit.
Awaiting SEC approval
Despite the short-term positive reactions, Bitcoin still has to obtain final approval from the SEC, which has historically been reluctant to grant authorization due to concerns related to fraud and potential market manipulation.
The cryptocurrency industry remains in anticipation of the outcome of this crucial decision, which could open new opportunities for institutional investors and further redefine Bitcoin’s role in the global financial landscape.
Conclusions
Larry Fink, CEO of BlackRock, highlighted the role of Bitcoin as "digital gold" and expressed his willingness to work with regulatory authorities for the approval of the spot Bitcoin ETF.
This would represent an important step toward democratizing cryptocurrencies and making the market more accessible.
While the industry awaits SEC approval, attention is focused on the potential impact of this decision on the future of Bitcoin and the entire cryptocurrency sector.