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Writer's pictureTainan Paiva

BlackRock CEO Larry Fink has stated that cryptocurrencies will play a role similar to that of gold

10/16/2023

On the past Monday, Larry Fink, the CEO of BlackRock, the world's largest asset management firm, made a pertinent observation regarding the surge in Bitcoin's price, which was triggered by a false news report concerning the approval of a spot ETF. Fink highlighted this episode as an example of "pent-up interest in cryptocurrencies," amid a landscape of increasing attention and speculation surrounding this digital asset.


The price of Bitcoin skyrocketed, nearing the $30,000 mark in the early hours of the day, following a report by the Cointelegraph claiming that the proposed BlackRock ETF had received the green light from the Securities and Exchange Commission. However, the publication was later retracted, and Cointelegraph issued an apology, characterizing it as "a tweet that disseminated inaccurate information."


Despite Bitcoin experiencing a drop after the revelation that the news was false, the world's largest cryptocurrency in terms of market capitalization managed to retain some gains, concluding the day with a 4.8% increase, reaching $28,505. It was at this juncture that Larry Fink, in his capacity as BlackRock's CEO, commented on the event and shared a controversial opinion about Bitcoin.


"Some of this appreciation goes beyond mere speculation," Fink stated in an interview with Fox Business. "I believe today's rally is driven by a flight to safety, given the current uncertainty surrounding conflicts like the Israeli one and global terrorism. There is a growing migration towards safe-haven assets, whether it's in Treasury bonds, gold, or cryptocurrencies, depending on one's perspective. And in my view, cryptocurrencies play a crucial role as a store of value."


The current week assumes immense significance for the markets as the U.S. Securities and Exchange Commission (SEC) is on the verge of making critical decisions regarding other proposed Bitcoin funds from renowned companies such as BlackRock, Fidelity, Invesco, Bitwise, VanEck, WisdomTree, and Valkyrie. The deadlines for the forthcoming determinations or extensions pertaining to these proposals are scheduled between October 16th and 19th, with the ultimate deadline set for mid-March 2024. This is a moment of great anticipation for cryptocurrency enthusiasts and investors closely monitoring financial market developments.

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