BlackRock CEO Larry Fink offered insights into the firm’s Bitcoin exchange-traded fund (ETF) application, responding to a tumultuous morning that began with an erroneous report of approval by the Securities and Exchange Commission (SEC), later retracted by the news outlet.
During an appearance on “The Claman Countdown,” Fink emphasized the heightened global interest in cryptocurrencies. He stated, “I can’t talk about the specifics of anything; I think it’s just an example of the pent-up interest in crypto. We are hearing from clients around the world about the need for crypto,” while refraining from commenting on the application’s status.
Following the publication and retraction of the news report, Bitcoin experienced a nearly 10% rally before settling at around $28,000. Fink suggested that the day’s surge was due to a “flight to quality,” with the ongoing Israeli conflict and global terrorism concerns prompting investors to seek safer assets.
FOX Business was the first to confirm that the initial report was incorrect, as shared on X, formerly Twitter.
In June, BlackRock, a company managing around $9 trillion in assets, joined the growing list of firms filing with the SEC for a spot Bitcoin ETF. Their proposed iShares Bitcoin Trust, contingent upon regulatory approval, will utilize Coinbase Custody as its custodian, providing investors with exposure to the leading cryptocurrency by market capitalization without direct ownership. A spot Bitcoin ETF would closely track Bitcoin’s underlying market price.
However, the SEC has denied similar applications from various firms, including Grayscale, which has taken legal action against the regulator over the rejection. Fidelity and CBOE have also faced regulatory denials.
Fink underlined BlackRock’s intention to democratize access to cryptocurrencies and make them more cost-effective for investors, aligning with their goal to provide wider accessibility to the crypto market.
Several other ETFs, such as the Bitwise Crypto Industry Innovators ETF, ProShares Bitcoin Strategy ETF, and Wisdomtree Enhanced Commodity Strategy ETF, offer exposure to the cryptocurrency industry rather than direct cryptocurrency ownership.