For BlackRock’s CEO, Larry Fink, the largest of the cryptocurrencies, Bitcoin, is an asset with great qualities.
The love story between the world’s largest asset manager, BlackRock, with the crypto market seems to continue on a good path. In this sense, the CEO of that firm, Larry Fink, praised the qualities of Bitcoin, which he qualifies as “an international asset.”
The businessman spoke about the advantages of the crypto market and the benefits that a Bitcoin spot ETF could have for the sector. The firm recently applied for a spot exchange-traded fund with the SEC, but its application was rejected by the regulatory agency. Subsequently, the firm corrected and reintroduced the application.
Since the asset manager began his flirtations with the digital currency market, the BTC price has regained strength. After surpassing the highest price in more than a year, the value of the coin remains solid above $30,000 per unit. If the SEC finally approves the ETF, a new bull market could be unleashed for Bitcoin.
BlackRock Attracted by Bitcoin Qualities
The most popular of the cryptocurrencies, Bitcoin, has many qualities that distinguish it from the rest of the financial assets. Scarcity and decentralization are the most important, although not the only ones. For Fink, virtual currency is much more than a speculation instrument.
This Thursday, during an interview on Fox Business, the businessman remarked that cryptocurrencies are an ideal instrument for investors. In particular, he supports the narrative that Bitcoin is a store of value against inflation or some kind of “digitized gold”.
Fink said regulators need to note that an ETF linked to that digital currency can become an element that democratizes finance. Since the CEO has been at the helm of the management firm, he has been no stranger to the subject of digital currencies. In fact, he was one of the highly influential commentators late last year and now with the BTC price rally.
“Let’s be clear: Bitcoin is an international asset. It is not based on any single currency, so it can represent an asset that people can use as an alternative,” he told the aforementioned outlet.
Among the qualities of Bitcoin that Fink recognizes is that it can serve to protect people against devaluation.
Impact on the Cryptocurrency Market
The fact that Larry Fink is the head of the firm with the largest amount of assets under management in the world ($9 trillion dollars), is remarkable for cryptocurrencies. His positive attitude generates bullish effects on the price of Bitcoin, since the businessman not only points to the speculative nature, but to other qualities.
Any investor can consider Bitcoin as a speculative and risky asset and that would be normal. But Fink goes further and takes the position of the enthusiasts of that community. Consequently, few big businessmen dare to describe Bitcoin as the digital equivalent of gold. Hence, the market enthusiastically receives the words of the head of BlackRock.
Nevertheless, the matter could be of greater weight if the SEC finally decides to approve the Bitcoin spot ETF that the administrator requested. So far, the markets are waiting.
The qualities of Bitcoin certainly go far beyond speculative actions, although not all major investors are willing to admit it. These heavyweights do not seem enthusiastic, so significant bullish sentiment is yet to surface. So far, the coin looks like a depressed spring.
By Audy Castaneda
