BlackRock CEO: 'Very optimistic' about Bitcoin

Author: Mlixy; Source: W3C DAO

On March 29, BlackRock CEO Larry Fink was "surprised" by the performance of the Bitcoin ETF ” and once again emphasized his “very optimistic” attitude towards Bitcoin’s long-term viability.

Attitude Change

Fink accepted on March 27 Fox Business said in an interview: "IBIT is the fastest-growing ETF in the history of ETFs.In the history of ETF development, no product can accumulate assets as quickly as IBIT. We are now creating a more liquid and transparent I was very pleasantly surprised by the market.Before we submitted the application, I never expected that we would see this kind of retail demand." Fink also said: "I am very optimistic about the long-term viability of Bitcoin. ”

Farside Investors data shows that IBIT performed strongly in the early stages of trading, attracting a total of US$13.5 billion in capital inflows in the first 11 weeks, with the highest single-day inflow reaching US$849 million on March 12. IBIT’s average daily inflow is just over $260 million.

In addition, BlackRock CEO Larry Fink said in an interview with Fox Business that even if the U.S. Securities and Exchange Commission (SEC) With Ethereum designated as a security, launching an Ethereum ETF is still possible.

When asked whether BlackRock would list an Ethereum spot ETF if Ethereum was recognized as a security, Fink said yes. answer. Eight potential issuers, including BlackRock, have submitted Ethereum spot ETF applications to the SEC. The SEC's final decision will be made in May.

However, Larry Fink’s attitude towards Bitcoin has only changed in recent years.

On January 15, Larry Fink’s attitude towards Bitcoin changed significantly. He believed that Bitcoin is “more powerful than any government.” big". Fink noted that Bitcoin can serve as a long-term store of value if people are concerned about government instability or economic manipulation.

But this is in sharp contrast to his views in 2017, when he and JP Morgan CEO Jamie Dimon criticized Bitcoin, and Fink even called it "money laundering" index of".

The giant whale enters the game

BlackRock , whose English name is BlackRock, was founded in 1988 and is currently the world's largest asset management, risk mitigation and consulting company.

According to relevant reports, BlackRock’s assets under management in the fourth quarter of 2023 reached US$10 trillion. It can be said that even without the launch of Bitcoin Coin spot ETF, as a towering tree in the global financial industry, BlackRock also firmly ranks first.

In fact, BlackRock has become interested in the encryption industry and blockchain technology as early as the past few years. However, there were many challenges at that time. The first was the relatively high volatility of the market, and the second was the lack of reasonable supervision. The market The rules have not yet been fully established, and over the past decade, the SEC has been rejecting applications for spot Bitcoin ETFs due to concerns about market manipulation, so it has not made any significant moves.
However, on January 11, 2024, a number of institutions led by BlackRock launched the first batch of Bitcoin spot ETFs in the United States, called iShares Bitcoin Trust (IBIT), which directly reversed the trend of spot Bitcoin in the past ten years. The embarrassing situation of constantly being rejected for cryptocurrency ETF applications has opened a new chapter in the development of cryptography.

It’s no exaggeration to say that BlackRock’s surprise filing for a Bitcoin ETF has reignited interest in cryptocurrency trading tools. Previously, many thought the project was doomed — even though it had the iShares Bitcoin Trust, which was approved for just one of the hundreds of ETFs it manages.

But it is undeniable that Bitcoin ETF is very important because it allows more institutions to obtain Bitcoin by holding stocks such as BlackRock's iShares or WisdomTree's BTCW Investment exposure rather than holding Bitcoin directly. This means that retail and institutional investors can invest in Bitcoin through index funds.

Fink’s point of view

Previously, Fink will Putting himself in the “Jamie Dimon camp” — the JPMorgan Chase CEO is a noted cryptocurrency skeptic — and said the world doesn’t need “a new international currency.” At the time, Fink also said that Bitcoin could undermine the U.S. dollar’s ​​status as a reserve currency.

However, Fink’s attitude has now changed dramatically, because at this time many people in the traditional financial field are re-examining blockchain, especially The “tokenization” of real-world assets such as stocks and bonds.

On January 14, 2024, BlackRock CEO Larry Fink stated in an interview that he hopes to tokenize stocks, bonds, and all financial assets he can.

Then, on March 20, BlackRock announced the launch of its first tokenized fund issued on a public blockchain, namely BlackRock USD Institutional Digital Liquidity Fund (BUIDL).

It is reported that BUIDL will be subscribed through Securitize, a digital asset securities company focusing on RWA, to serve qualified investors, and the funds will be held by official custodians BNY Mellon holds. The fund invests 100% of its total assets in cash, U.S. Treasuries, and repurchase agreements, allowing investors to earn income while holding tokens on the blockchain.

According to the announcement, the fund’s minimum initial investment is US$5 million. BUIDL seeks to provide a stable value of $1 per token, and owning the tokens generates dividends, with BlackRock paying out daily accrued dividends as new tokens directly into investors’ wallets. In short, investors can obtain fund income through token holdings while avoiding complicated procedures and storage costs.

For this new product, BlackRock CEO Larry Fink said bluntly, “We believe that the next step will be the tokenization of financial assets, which means that every Stocks and each bond will have its own underlying QCIP. It will be recorded on each investor’s ledger, but most importantly, we can tailor the strategy to suit each individual through tokenization.”

Since the adoption of the Bitcoin spot ETF, BlackRock has become a benchmark among crypto practitioners.

Written at the end

In short, as the world’s largest The CEO of asset management company BlackRock, Fink’s attitude and views on cryptocurrency have an important influence and guidance on the entire industry. His transformation also reflects the maturation and development of the cryptocurrency market, as well as the adaptation and change of traditional financial institutions.

Fink's vision is that cryptocurrency will become a global currency that can transcend national borders and political restrictions and achieve greater efficiency and freedom. He said: "I think this is a very exciting time and we are witnessing the birth of a new currency that will change our world."