BlackRock CEO Larry Fink discussed the role of cryptocurrencies in the financial system in a recent interview. Fink made important statements, especially about the future of Bitcoin and Ethereum. Fink’s views offer a clear perspective on the future of cryptocurrencies and tokenization. Meanwhile, Fink also shared his views on the Ethereum ETF after the spot Bitcoin ETF.
BlackRock CEO Larry Fink talks about crypto
Larry Fink states that he was previously skeptical about Bitcoin. However, he admits there has been a significant change in perspective. About two years ago, he came to firmly believe that Bitcoin was an alternative source of wealth. Despite this, he does not view Bitcoin or other cryptocurrencies as currencies in their own right, but rather as asset classes. Fink emphasizes the limited nature of Bitcoin, drawing parallels with gold, a traditional safe-haven asset. According to him, Bitcoin serves as a protective asset class like gold. In this context, BlackRock CEO says:
I believe in Bitcoin. Because I think it is an alternative source for holding wealth. I don’t believe Bitcoin will ever become a currency. I believe this is an asset value. However, we will create cryptocurrencies and use Blockchain.
ETFs are just the beginning of a technological revolution!
BlackRock CEO also weighs in on the imminent launch of Bitcoin ETFs. He describes these as important steps towards wider acceptance and integration of digital currencies in financial markets. Fink notes that ETFs are just the beginning of a technological revolution in financial markets. Fink’s vision extends to the idea that ETFs will eventually transform every asset class, with the final step being the tokenization of assets.
According to Fink, tokenization is a significant technological advance that could revolutionize the way assets are handled. It involves converting rights over an asset into a digital token on the Blockchain. Therefore, Fink sees this as a future where transactions are recorded instantly and ownership can be transferred seamlessly, increasing efficiency and transparency in the financial system. He makes the following statement on this subject:
Today we have the technology to tokenize. If you have a tokenized security and identity, the moment you buy or sell an instrument on a public ledger, they are all created together. You want to talk about issues related to money laundering. This eliminates all corruption by having a tokenized system.
Is Ethereum ETF next after Bitcoin ETF?
Additionally, BlackRock sees ETFs as the first step in a broader technological revolution. So it aims to embed it deeply into its operations. Fink comments positively on the inflows observed with the launch of Bitcoin ETFs. It also points to intense interest from investors.
When asked about the possibility of other cryptocurrency ETFs like Ethereum, Fink acknowledges the potential. However, he avoids making definitive statements. He talks about regulatory challenges for the Ethereum ETF. He also underlines the need to obtain approval from institutions such as the SEC. However, he sees these developments as steps towards a more tokenized future. In this regard, Fink says the following:
I see value in owning Ethereum ETFs. These are steps towards tokenization. And I really believe that’s where we’re going.
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