BlackRock’s CEO Larry Fink Talks About Bitcoin’s Recent Rally and Interest in Crypto
In a recent interview with Fox Business, BlackRock’s CEO Larry Fink commented on the recent rally in the Bitcoin market. He stated that the rally, which saw prices hit two-month highs near $30,000, is „an example of the pent-up interest in crypto“. According to Fink, the company has been hearing from clients around the world about the need for crypto.
While Fink couldn’t comment on the progress of BlackRock’s spot Bitcoin ETF application, he did note that the recent Bitcoin rally could be due to safe-haven demand, citing issues surrounding the Israeli war and global terrorism.
BlackRock’s Reversal on Bitcoin
BlackRock, the world’s largest asset manager, applied to create a spot Bitcoin Exchange Traded Fund (ETF) back in June. This marked a full reversal in CEO Larry Fink’s opinion on Bitcoin. In 2017, Fink referred to Bitcoin as an index of money laundering, but now he praises the cryptocurrency as having digitized gold.
The SEC has previously rejected all similar spot Bitcoin ETF applications. However, BlackRock’s application included a new market surveillance and information-sharing agreement designed to combat potential market manipulation. Following BlackRock’s application, dozens of other major US financial institutions filed their own copycat applications.
BlackRock and other major firms like Fidelity and Vanguard are viewed as having significant influence over US financial regulators, and it is highly anticipated that the latest batch of spot Bitcoin ETF applications will be approved.
Spot Bitcoin ETFs Expected by March 2024
The market’s confidence in the approval of spot Bitcoin ETF applications was further boosted by the SEC’s decision not to appeal a recent legal loss they sustained regarding their rejection of Grayscale’s application. It is believed that this decision could be a sign that the agency is preparing to approve a number of spot Bitcoin ETFs in the coming months.
The final deadline for the SEC to make a decision on BlackRock’s and other spot Bitcoin ETF applications submitted in June is around mid-March 2024.
Bullish Narratives for 2024
If these applications are approved, it could be a key bullish narrative for Bitcoin in 2024. The approval of spot Bitcoin ETFs would be seen as a regulatory „stamp of approval“ and boost investor confidence, especially among institutional investors. Additionally, it would make it easier for investors who are unfamiliar with crypto exchanges to invest in Bitcoin through their existing brokers.
The issuers of spot Bitcoin ETFs are also expected to dedicate significant marketing budgets to promote their new ETFs, which could improve Bitcoin’s standing in the public opinion. Another bullish narrative for 2024 is the halving of Bitcoin’s issuance rate in April. In the past, major rallies in the BTC price to new all-time highs have typically occurred in the quarters following Bitcoin’s prior halving events.
Bitcoin’s performance has also shown a strong positive correlation with financial conditions in recent years, performing well in periods of easier/easing conditions and worse in periods of tighter/tightening financial conditions.
Frequently Asked Questions
1. What did BlackRock’s CEO Larry Fink say about Bitcoin’s recent rally?
Larry Fink stated that Bitcoin’s recent rally is an example of the pent-up interest in crypto. He mentioned that BlackRock is hearing from clients around the world about the need for crypto.
2. What is BlackRock’s opinion on Bitcoin now compared to the past?
BlackRock’s CEO Larry Fink had referred to Bitcoin as an index of money laundering in the past. However, the company has now reversed its opinion and praises Bitcoin as having digitized gold.
3. Are spot Bitcoin ETFs expected to be approved soon?
There is a strong likelihood that the latest batch of spot Bitcoin ETF applications, including BlackRock’s, will be approved. These applications have included new market surveillance and information-sharing agreements to combat potential market manipulation.
4. When can we expect the approval of spot Bitcoin ETFs?
The final deadline for the SEC to make a decision on spot Bitcoin ETF applications, including BlackRock’s, is around mid-March 2024.
5. What are the bullish narratives for Bitcoin in 2024?
The approval of spot Bitcoin ETFs would be seen as a regulatory „stamp of approval“ and boost investor confidence in Bitcoin. Additionally, the halving of Bitcoin’s issuance rate in April and its positive correlation to financial conditions are also considered bullish narratives for 2024.
