BlackRock’s newest incursion into the Bitcoin (BTC) market has attracted attention. The world’s largest asset manager filed to launch the first spot BTC Exchange Traded Fund (ETF), which awaits approval or rejection from the U.S. Securities and Exchange Commission (SEC).
BlackRock To Bring Hope To The Bitcoin Market?
The regulator and the asset manager have sent signals across mainstream media platforms. First, the SEC referred to the spot Bitcoin ETFs petitions as “inadequate” on the Wall Street Journal. This forced BlackRock and other companies to refile their applications.
Now, the CEO of BlackRock, Larry Fink, went on national U.S. television to talk about their ETF filing and Bitcoin. Analyst Dylan LeClair shared a clip of the interview with FOX where Fink addressed the current crypto regulatory environment in the United States.
In that sense, Fink believes that their ETF filing could be an opportunity for the SEC and other regulators to view it as a way “democratize crypto.” The Commission has been enforcing actions and regulations on the nascent industry; many pro-crypto entities claim, rather than giving it room to evolve.
Thus, according to the company’s CEO, the BlackRock Bitcoin ETF filing could be “hope” for crypto investors and U.S. regulations.
Don’t Invest In Gold
However, Fink seemed more interested in Bitcoin and its long-term bullish potential. The executive claimed that cryptocurrencies succeeded at “digitizing” gold but believes the precious metal is less effective in protecting the average person’s wealth against inflation and other economic issues.
Fink stated:
I do believe the world of crypto its digitizing gold in many ways; instep of investing in gold as a hedge against inflation, a hedge against the honorous promises of any one country, or the devaluation of your currency, whatever country you are in, let’s be clear: Bitcoin is an international asset, is not based on any one currency, so it can represent an asset that people can play as an alternative (…).
Therefore, BlackRock’s ETF could be an opportunity for people to protect their wealth, at least according to its CEO.
The crypto community has been positively reacting to Fink’s statement, but LeClair claims that Bitcoin has the potential to go after more than “just the hold market.”
The chart above shows that BTC trades at $30,500 with sideways movement during today’s trading session.
Chart from Tradingview