Larry Fink, the chief executive officer of BlackRock, the world’s largest asset manager, has expressed increasing enthusiasm regarding the surging demand for digital currencies, particularly from those traditionally invested in gold.
A Shift in the BlackRock’s Investment Landscape
During a recent conversation with CNBC following the disclosure of BlackRock’s second-quarter financial results, Fink discussed the noticeable shift in investment interests over the past half-decade. He stated that a significant chunk of gold investors have started exploring the potential of cryptocurrencies.
Fink made an interesting comparison between Exchange-Traded Funds (ETFs) and cryptocurrencies, noting how ETFs have played a pivotal role in making gold investment accessible to the masses. He suggested that cryptocurrencies could potentially have a similar impact.
Hedge Against Currency Fluctuations
Fink also highlighted the recent depreciation of the US dollar and its overall appreciation in the past five years. He noted that an international cryptocurrency product could serve as a sound hedge against such currency fluctuations.
The Role of Bitcoin ETFs
Last month, BlackRock submitted an application to list a spot Bitcoin (BTC) ETF with a surveillance-sharing agreement. This move could potentially influence the US Securities and Exchange Commission (SEC) to approve such a product, after having rejected multiple applications previously.
