The role of Bitcoin is “digitization of gold”
Larry Fink, CEO of BlackRock, the largest asset management company in the United States, said on the Fox Business program on the 5th that Bitcoin is a “global asset” that plays the role of “digitizing gold”.
— Michael Saylor (@saylor) July 5, 2023
Fink has admitted he was previously skeptical of Bitcoin, saying it was heavily used for “illegal activities.” However, he said that in many ways, crypto assets (virtual currencies) will play a role in digitizing gold, given the ease of access to bitcoin.
As an alternative to investing in gold as a hedge against inflation and currency devaluation risks, he argued, investing in bitcoin, a “global asset” that is not based on any national currency, could be considered.
connection:Nasdaq reapply for Valkyrie Bitcoin ETF BlackRock CEO comments on Bitcoin and gold |
Bitcoin ETF Democratizes Cryptocurrencies
On June 15, BlackRock applied to the U.S. Securities and Exchange Commission (SEC) for a spot-type Bitcoin ETF (exchange-traded fund), iShares Bitcoin Trust. After that, the SEC pointed out that the application documents lacked clarity and did not provide sufficient information, and through the US Nasdaq, it specified that the major US exchange Coinbase would be the exchange in the surveillance sharing agreement. I submitted the document again.
Fink described how ETFs “revolutionized” the mutual fund industry and reshaped it. BlackRock is a proponent of the “digitization of investment products,” he said. “We believe that if we can tokenize more assets and securities, we can revolutionize finance again.” And he emphasized that Bitcoin is indeed a tokenized asset.
Furthermore, Fink points out that the spread between the buy and sell prices of cryptocurrencies is currently very high, which is costing a lot of money. What BlackRock is trying to achieve with cryptocurrencies, it claims, is “to make cryptocurrencies more democratic and cheaper for investors.”
The SEC has historically disapproved all Bitcoin spot ETF applications, but BlackRock has received SEC approval for 575 ETF applications in the past, with only one being disapproved. We have a wealth of experience and achievements in managing ETFs.
Fink said the company has continued to work closely with regulators on its Bitcoin ETF application and “hopefully they will perceive it as a way to democratize cryptocurrencies.”
How to view binance
Changpeng Zhao (CZ), CEO of major cryptocurrency exchange Binance, revealed on Twitter Space on the 6th that he believes the entry of large institutional investors like BlackRock into the industry is “very beneficial”. bottom.
Starting with BlackRock’s bitcoin ETF application, existing financial giants such as Fidelity, Citadel, Schwab, and Deutsche Bank have entered the cryptocurrency industry one after another through ETF applications and the establishment of exchanges. ing.
CZ sees financial giants reluctant to use “pure crypto or crypto-native platforms,” preferring relationships with traditional finance.
However, he was bullish, saying that it could bring in new demographics who were unfamiliar with cryptocurrencies, and that competition would bring innovation, which would help improve Binance.
We welcome the participation of many players, and the bigger the better.
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