Author: Mlixy; Source: W3C DAO
On March 29, BlackRock CEO Larry Fink was “pleasantly 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 said in an interview with Fox Business on March 27: "IBIT is the fastest growing ETF in the history of ETFs. In the history of ETF development, there is no product that can accumulate assets as quickly as IBIT. We are now creating a more liquid sex, a more transparent market, which surprised me. 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) designates Ethereum 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 responded in the affirmative. 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 toward Bitcoin changed significantly, arguing that Bitcoin is “bigger than any government.” 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 stark contrast to his views in 2017, when he joined JP Morgan CEO Jamie Dimon in criticizing Bitcoin, with Fink even calling it an “indicator of money laundering.”
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 reached US$10 trillion in the fourth quarter of 2023. It can be said that even without the launch of a Bitcoin spot ETF, BlackRock, as a towering tree in the global financial industry, is still firmly ranked first. Top spot.
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. First, the market volatility was relatively high, and secondly, there was a lack of reasonable supervision and market rules. It is completely established, and in the past ten years, 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), directly reversing the number of spot Bitcoin ETF applications in the past decade. The embarrassing situation of being rejected has opened a new chapter in the development of encryption.
It’s no exaggeration to say that BlackRock’s surprise filing for a Bitcoin ETF has reignited interest in the cryptocurrency trading vehicle. Previously, many thought the project was destined to fail — even though it has the iShares Bitcoin Trust, which was approved as just one of the hundreds of ETFs it manages.
But there's no denying that Bitcoin ETFs are important because they allow more institutions to gain exposure to Bitcoin by holding stocks like BlackRock's iShares or WisdomTree's BTCW, rather than holding Bitcoin directly. This means that retail and institutional investors can invest in Bitcoin through index funds.
Fink's perspective
Previously, Fink placed himself in the “Jamie Dimon camp” — the JPMorgan CEO is a prominent cryptocurrency skeptic — and said the world didn’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.
Now, however, Fink’s attitude has changed dramatically, as many in traditional finance are taking a second look at 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, the 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 the official custodian, Bank of New York Mellon. 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 minimum initial investment in the fund 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.
Regarding 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 each stock and each bond will have its own basic QCIP. It will be recorded in on every investor’s ledger, but most importantly, through tokenization we can tailor strategies to suit each individual.”
Since the passage of the Bitcoin Spot ETF, BlackRock has become a benchmark among crypto practitioners.
write at the end
In short, as the CEO of BlackRock, the world's largest asset management company, Fink's attitude and views on cryptocurrency have an important influence and guidance on the entire industry. His transformation also reflects the maturity 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 to achieve greater efficiency and freedom. "I think this is a very exciting time and we are witnessing the birth of a new currency that will change our world," he said.
