BlackRock CEO Larry Fink’s appreciation of investor demand: Gold or cryptocurrencies?
Larry Fink, CEO of BlackRock, has mentioned on several occasions that investors are showing increasing interest in cryptocurrencies, especially in the context of gold. Investors who have traditionally looked to gold as a safe and stable investment are beginning to wonder if cryptocurrencies could offer a similar alternative.
As a curious fact, Larry Fink in 2017 stated: «Bitcoin just shows how much demand for money laundering there is in the world. It is all that it is. It’s an index of money laundering.”
Currently, Fink has highlighted that although cryptocurrencies are a relatively new asset and not yet fully regulated, they are gaining popularity and attention in the financial markets. Some investors seek to diversify their portfolios and see cryptocurrencies as an opportunity to do so.
In this regard, on July 14, Michael Saylor tweeted that “Larry Fink of BlackRock thinks Bitcoin will transcend every international currency due to broad-based worldwide demand.”
Gold and Cryptocurrencies, Competitors or Partners? Larry Fink’s Perspectives on Investor Demand
In an interview with Fox Business, Larry Fink assured that the role of cryptocurrencies and Bitcoin is to digitize gold in many ways. Functioning as a hedge against inflation, a hedge against the onerous problems of any country or the devaluation of its currency in any country in which it is located.
“As I said just 3 days ago. Public opinion on Bitcoin is about to change so fast you won’t believe it.”
Specifically, on CNBC, Larry Fink said that “increasingly” gold investors have been asking about the role of cryptocurrencies in the last five years, highlighting the role of the exchange.
“If you look at the value of our dollar, how it has depreciated in the last two months and how much it has appreciated in the last five years…an international crypto product can really transcend that.”
“That is why we believe that there are great opportunities and that is why we see more and more interest. And the interest is wide and global,” he further explained.
Fink reaffirmed that BlackRock’s philosophy is based on the perspective of the future and the importance of providing investment options to users in those assets that they believe will appreciate over time.
The “BlackRock” Effect
Since BlackRock filed its application for a Bitcoin ETF in mid-June, the cryptocurrency industry has seen encouraging momentum from a number of quarters:
BlackRock’s decision to apply to launch this product prompted other major players, including Fidelity, Invesco, and several others, to submit their own applications for a Bitcoin ETF as well.
In line with the above, there was a notable increase in interest from enthusiasts and investors in adding Bitcoin to their portfolios, which also generated a positive impact on the value of Bitcoin in the main markets, where prices are now seen close to $31,000 per unit.
According to a study by K33 Research, institutional activity in BTC was “currently thriving,” according to the research. In fact, the CME Chicago stock exchange posted its “strongest monthly entry point since October 2021” in bitcoin ETPs in June.
European ETFs increased their capital inflow by 5%, several of which have physical holdings of the digital currency behind them. Even assets in Brazil benefited, with growth of 3% in the last month.
By Audy Castaneda
